Can a bullish breakout lead the EURUSD today?
The downside pressures on the EURUSD got more tensed since the 17th of February 2016 where the price dropped from 1.1177 to 1.0990 and thereafter retraced to the upside close to the 23.6% zone.
Today’s major pivot point area, the 1.1034 zone, is a critical level for the buyers in their attempts of retracing the price, this time, upwards.
Probable Scenario
The latest upside bounce of the price from the 1.0989 zone to the 1.1011 level is a good indication that the bulls could likely exert a further momentum to boost the pair higher.
Stochastic oscillators’ formation signals that a probable bullish breakout has greater probabilities to occur.
In the event where the pair appreciates above the 1.1034 level, the buyers could set their take profit targets at 1.1085 and 1.1105 respectively.
Alternative Scenario
Alternatively, a bearish break-out below the 1.0989 zone could signal that the sellers may exert far greater pressures to force the price to lower areas such as the 1.0927.
Today’s Major Announcements
- The Markit Services PMI (Feb), the Markit PMI Composite (Feb), the New Home Sales (MoM) (Jan), and the New Home Sales Change (MoM) (Jan) releases are expected to have a medium impact on the U.S. dollar
- There are no any announcements that could have a strong impact on the euro
Synopsis
- Probable trend (Bullish): 1.1034
- Bullish take profit targets: 1.1085, 1.1105
- Stop loss target: 1.0989
- Alternative trend (Bearish): 1.0989
- Bearish take profit target: 1.0927