The euro and the U.S. dollar are lately oscillating within a bullish formation between the range of 1.1365 and 1.1457 respectively.

The bulls have placed strong pressures in their attempts of taking control over the price, and managed to lead the pair from 1.1276 to 1.1457.

Probable Scenario

In the scenario where the EURUSD stabilizes above the 1.1457 area, the price could escalate as high as 1.1607, Fibonacci’s 161.8%.

The Stochastic oscillator indicates that the pair has greater chances of appreciating to upper levels at the 70 zone.

EURUSD (May 2 2016)

Alternative Scenario

Alternatively, should the sellers take the lead and force the price below the 1.1365 area, the pair could decline as low as 1.1220.

Today’s Major Announcements

  • The ECB President Draghi’s Speech release is expected to have a strong impact on the euro
  • The ISM Manufacturing PMI (Apr) and the ISM Prices Paid (Apr) releases are expected to have a strong impact on the U.S. dollar

Synopsis

  • Probable trend (Bullish): 1.1457
  • Bullish take profit target: 1.1607
  • Stop loss target: 1.1365
  • Alternative trend (Bearish): 1.1365
  • Bearish take profit target: 1.1220