The upside pressures on the EURUSD got more tensed since the 31st of March 2016 where the price climbed from 1.1307 to 1.1438.

Today’s major pivot point area, the 1.1388 zone, is a critical level for the buyers in their attempts of boosting the price once again to the upside.

Probable Scenario

The latest stabilization of the price close to the 1.1388 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 1.1438.

EURUSD (Apr 5 2016)

Alternative Scenario

Alternatively, a bearish breakout below the 1.1373 zone could signal that the sellers may exert far greater pressures to force the price to lower areas such as the 1.1338 level as their first target.

Today’s Major Announcements

  • Spain’s Markit Services PMI (Mar), Euro zone’s Markit Services PMI (Mar) and Markit PMI Composite (Mar) releases are expected to have a medium impact on the euro
  • U.S.’s Trade Balance (Feb), the Markit Services PMI (Mar), the Markit PMI Composite (Mar), and the ISM Non-Manufacturing PMI (Mar) announcements are expected to have a medium impact on the U.S. dollar

Synopsis

  • Probable trend (Bullish): 1.1388
  • Bullish take profit target: 1.1438
  • Stop loss target: 1.1373
  • Alternative trend (Bearish): 1.1373
  • Bearish take profit target: 1.1338