The buyers of the euro made some good gains since the 13th of January 2016 as the price has escalated from as low as 1.0810 to as high as 1.0895. On the other hand the sellers couldn’t take the lead and made some loses of 85 pips.
The price has currently stabilized above the 1.0854 zone which is today’s major pivot point area where both the buyers and the sellers will attempt to take their chances and shift the pair to their favour.
Probable Scenario
In the scenario where the bullish channel formation resumes and the buyers withhold the pair above the 1.0854 level, the price could appreciate to 1.0909 Fibonacci’s 100.0%, and 1.0974 Fibonacci’s 161.8%.
Alternative Scenario
In contrast, In the event where the bearish pressures overcome the bullish ones and force the price below the 1.0828 area, the pair could aggressively decelerate to lower zones such as the 1.0728 level.
Today’s Major Announcements
- The Initial Jobless Claims (Jan 8) and the Continuing Jobless Claims (Jan 1) announcements are expected to have a medium impact on the U.S. dollar
- The ECB Monetary Policy Meeting Accounts announcement is expected to have a major impact on the euro
- The Eurogroup meeting release is expected to have a medium impact on the euro
Synopsis
- Probable trend (Bullish):1.0854
- Bullish take profit targets:1.0909, 1.0974
- Stop loss target: 1.0828
- Alternative trend (Bearish): 1.0828
Bearish take profit target: 1.0728