The buyers of the euro have been placing strong pressures, since the 18th of January 2016, to hold the pair above the 1.0872 level in their attempts of retracing the price once again to the upside.

The price has lately stabilized above the 1.0872 zone which is today’s major pivot point area where both the bulls and the bears will attempt to take control over the pair.

Alternatively though, the sellers could increase their pressures thus taking advantage of the pivot point zone and with a successful downside break force the pair to lower levels.

Probable Scenario

In the event where the bullish momentum gets more tensed, the price could appreciate as high as 1.0915, Fibonacci 61.8%, and 1.0983, Fibonacci 100.0%.

EURUSD

Alternative Scenario

In contrast, in the event where the sellers place greater pressures and the pair drops below the 1.0846 zone, the price could decline to 1.0804.

Today’s Major Announcements

  • The ZEW Survey – Economic Sentiment (Jan), the ZEW Survey – Current Situation (Jan), the Consumer Price Index (YoY) (Dec), the Consumer Price Index (MoM) (Dec), the Consumer Price Index – Core (MoM) (Dec), the Consumer Price Index (YoY) (Dec), and the ZEW Survey – Economic Sentiment (Jan) releases are expected to have a medium impact on the euro
  • The NAHB Housing Market Index (Jan) release is expected to have a medium impact on the U.S. dollar

Synopsis

  • Probable trend (Bullish):1.0872
  • Bullish take profit targets:1.0915, 1.0983
  • Stop loss target:1.0846
  • Alternative trend (Bearish): 1.0846
  • Bearish take profit target:1.0804