So, the main event of the week and probably of the month happens today at 12:45 and 13:30 UTC which is the decision of the ECB.
It is very likely that the ECB will not change the rate today, so a strong movement is not expected at 12:45. However, at 13:30, the head of the ECB may inform about the change in the ECB position on rates, and in this case, the euro can go high. On the other hand, the head of the ECB, Christine Lagarde, may declare that the ECB will continue its super-soft policy which means the euro can go down quite heavily. Although not as much as it went up but it can show 100 points in the 4-digit right today.
So, we have the classic opportunity to trade on the news.
How it's done?
About 15 minutes before the release of important news, we open the 30-minute chart and find the maximum and minimum of the range 2-3 hours before the news. In this case, the levels should be no closer than 20 points (4-digit) from the current price, but not further than 70. We place orders for the breakdown of the range's borders (orders like buy stop and sell stop). If you expect strong movement in only one direction, better place an order in one direction.
It is important to know that in the case of pure trading on the news, the profit should be very small with no more than 20 points, just like a stop. The profit can be increased by increasing the volume of entry.
After the news release, you should track the price movement. If one of the orders is open, the second must be immediately deleted.
EURUSD:
We are ready to buy from 1.1120.
We are ready to sell from 1.1070.
