The EURUSD pair, after the ECB’s announcement on interest rates, aggressively dropped and thereafter spontaneously climbed back higher.

The price initially fell from 1.0972 to 1.0820 and thereafter immediately retraced upwards and rose as high as 1.1215. Today’s major pivot point area is the 1.1215 zone.

Probable Scenario

In the event where the bulls are able to withhold the pair above the 1.1126 zone, and manage with an upside beak at 1.1215 to lead the price higher, the pair could escalate to 1.1452, Fibonacci’s 161.8%.

The Stochastic oscillator’s latest indication confirms that a probable bullish retracement at the 20 level has greater chances to prevail.

Alternative Scenario

Alternatively, in the scenario where the bearish pressures take over, the sellers could force the price below the 1.1126 area, and lower to 1.0972.

Today’s Major Announcements

• The Wholesale Price Index (YoY) (Feb), the Wholesale Price Index (MoM) (Feb), the Harmonized Index of Consumer Prices (MoM) (Feb), the Consumer Price Index (MoM) (Feb), the Harmonized Index of Consumer Prices (YoY) (Feb), and the Consumer Price Index (YoY) (Feb) releases are expected to have a medium impact on the euro
• The Import Price Index (YoY) (Feb), the Export Price Index (MoM) (Feb), the Export Price Index (YoY) (Feb), and the Baker Hughes US Oil Rig Count releases are expected to have a medium impact on the U.S. dollar

Synopsis

• Probable trend (Bullish): 1.1215
• Bullish take profit target: 1.1452
• Stop loss target: 1.1126
• Alternative trend (Bearish): 1.1126
• Bearish take profit targets: 1.0972