The pair is in a constant declination mode as the bears have been able to patiently and steadily force the price to lower areas.

The price has dropped as low as 1.1065 and thereafter slightly escalated close to 1.1111 which is today’s major pivot area. Stabilization and minor bullish attempts are surfacing again.

Probable Scenario

In the condition where the bulls are able to withhold the price close to the 1.1111 level and exert greater pressures, the pair could appreciate back to 1.1161 and 1.1183.

Similarly the Stochastic oscillator indicates that the price has greater probabilities of retracing to the upside.

EURUSD (Feb 22 2016)

Alternative Scenario

In contrast, in the scenario where the pair drops to the 1.1065 area, the bears may place more pressures taking advantage of the bearish volatility, and force the price to the 1.1010 zone.

Today’s Major Announcements

  • The Markit Manufacturing PMI (Feb), the Markit Services PMI (Feb), and the Markit PMI Composite (Feb) for France, Germany and the Euro zone announcements are expected to have a medium impact on the euro
  • The Chicago Fed National Activity Index (Jan) and the Markit Manufacturing PMI (Feb) releases are expected to have a medium impact on the U.S dollar

Synopsis

  • Probable trend (Bullish): 1.1111
  • Bullish take profit targets: 1.1161, 1.1183
  • Stop loss target: 1.1065
  • Alternative trend (Bearish): 1.1065
  • Bearish take profit target: 1.1010