EUR/USD: Barclays recommends traders to sell the euro ahead of this week's ECB meeting

In a note to clients, Barclays recommends forex traders to sell the EUR/USD before this week's ECB meeting.

"We recommend selling the EUR/USD before the 20 October ECB meeting. Although announcements of technical changes in QE settings cannot be ruled out, we think the ECB will most likely wait until December to make announcements. We don't expect discussions on reduced QE, even though President Draghi will certainly be asked about it during the question/answer session.

With the USD strengthening recently, we believe that Draghi's confirmation that discussions on reduced QE are premature will somewhat weigh down on the EUR/USD."

Barclays has placed a limit sell order on the EUR/USD.