EUR/USD has retraced a bit over 38.2% of its recent fall ahead of the ECB meeting. Should the Bank merely ease 50 bp and make no mention of quantitative ease, the really should extend further. 1.3425 is first stop, the 50% retracement decline from 1.3735. 1.3500 is further resistance.
If they do announce a move to “non-standard methods”, look supports at 1.3165 and 1.3110 to give way. Barrier options are rumored at 1.3100 and 1.3000. We trade now at 1.3350.
