The upside pressures on the pair got more tensed since the 14th of April 2016 where the price climbed from as low as 1.1232 to as high as 1.1320.

The bulls took control over the pair by more than 85 plus pips to their favour, an astonishing movement with good gains for the buyers whereas losses for the sellers.

Probable Scenario

The latest appreciation or bounce of the price from the 1.1285 zone, to the 1.1320 area which is today’s major pivot point level, is a good indication that the bulls could likely exert further momentum to boost the price upwards.

Stochastic oscillators’ formation signals that a probable bullish retracement, close to the 50 level, has greater chances to occur.

In the event where the pair escalates, the buyers could set their take profit target at 1.1375.

Alternative Scenario

Alternatively, a bearish break-out below the 1.1320 zone and the 1.1285 level could signal that the sellers may exert far greater pressures to force the price to lower areas such as the 1.1232.

Today’s Major Announcements

• Germany’s ZEW Survey – Economic Sentiment (Apr), the ZEW Survey – Current Situation (Apr), and Euro zone’s ZEW Survey – Economic Sentiment (Apr) releases are expected to have a medium impact on the euro
• U.S.’s Housing Starts (MoM) (Mar) and the Building Permits (MoM) (Mar) releases are expected to have a medium influence on the U.S. dollar

Synopsis

• Probable trend (Bullish): 1.1320
• Bullish take profit target: 1.1375
• Stop loss target: 1.1285
• Alternative trend (Bearish): 1.1285
• Bearish take profit target: 1.1232