EUR/USD fell by 2,000 pips on Wednesday after news emerged that Credit Suisse is unable to fulfill its obligations. However, by the end of the US session, the pair saw a pullback as the Swiss National Bank said it will help by providing a 50 billion francs loan.
And since ahead is the highly anticipated ECB rate decision, traders can consider opening long positions to pull up the rate of the pair.
There is currently a three-wave (ABC) pattern, in which wave A represents the buying pressure at the end of yesterday's US session. Traders could enter the market by opening long positions from the 50% retracement level, with stop-loss set at 1.05150. Exit the market by taking profit upon the breakdown of 1.07230.
This trading idea is based on the "Price Action" and "Stop hunting" methods.
Good luck and have a nice day! Don't forget to control the risks.
