The downside pressures on the EURUSD got more tensed since the 17th of March 2016 where the price fell from 1.1341 to 1.1206.

Today’s major pivot point area, the 1.1231 zone, is a critical level for the buyers in their attempts of retracing the price once again to the upside.

Probable Scenario

The latest stabilization of the price close to the 1.1231 level is a good indication that the bulls could likely exert momentum to retrace the pair upwards.

Stochastic oscillators’ formation signals that a probable bullish retracement at the 40 level has greater probabilities to occur.

In the event where the pair appreciates, the buyers could set their take profit target at 1.1341.

EURUSD (Mar 23 2016)

Alternative Scenario

Alternatively, a bearish break-out below the 1.1163 zone could signal that the sellers may exert far greater pressures to force the price to lower areas such as the 1.1054 level as their first target.

Today’s Major Announcements

  • There are no any major releases on the euro
  • The New Home Sales Change (MoM) (Feb) and the New Home Sales (MoM) (Feb) announcements are expected to have a medium impact on the U.S. dollar

Synopsis

  •  Probable trend (Bullish): 1.1231
  • Bullish take profit targets: 1.1341
  • Stop loss target: 1.1163
  • Alternative trend (Bearish): 1.1163
  • Bearish take profit target: 1.1054