The EURUSD stabilized close to the 1.1416 zone, Fibonacci’s 50.0%, where the sellers will likely place pressures to take control over the price.

The price, since the 6th of May 2016, has been oscillating within a downside formation between the range of 1.1462 and 1.1375 respectively.

Probable Scenario

The latest formation and stabilization close to the 1.1416 level is a good indication that the sellers may take control over the pair in today’s trading session.

In the event where the pair drops and the sellers take over, the price could decline to 1.1307 Fibonacci’s 23.6%.

The Stochastic oscillator’s main and signal lines indicate that the price has greater probabilities to decelerate at the 20 zone.

EURUSD (May 12 2016)

Alternative Scenario

Alternatively, in the scenario where the bulls are able to place greater pressures and the pair breaks above the 1.1462 area, the price could rise to 1.1616 Fibonacci’s 100.0%.

Today’s Major Announcements

  • Germany’s Wholesale Price Index (YoY) (Apr), the Wholesale Price Index (MoM) (Apr), the Euro zone’s Industrial Production s.a. (MoM) (Mar), and the Industrial Production w.d.a. (YoY) (Mar) releases will likely have a medium impact on the euro
  • U.S.’s Initial Jobless Claims (May 6), the Import Price Index (YoY) (Apr), the Export Price Index (MoM) (Apr), the Export Price Index (YoY) (Apr), and the Import Price Index (MoM) (Apr) releases are expected to have a medium impact on the U.S. dollar

Synopsis

  • Probable trend (Bearish): 1.1416
  • Bearish take profit target: 1.1307
  • Stop loss target: 1.1462
  • Alternative trend (Bullish): 1.1462
  • Bullish take profit target: 1.1616