The EURUSD stabilized below the 1.1310 zone, Fibonacci’s 23.6%, where the sellers will likely place pressures to take control over the price.

The price, since the 11th of May 2016, has been aggressively oscillating within a downside formation between the range of 1.1443 and 1.1281 respectively.

Probable Scenario

The latest formation and stabilization below the 1.1310 level is a good indication that the sellers may take control over the pair in today’s trading session as well.

In the event where the pair drops and the sellers take over, the price could decline to 1.1213 Fibonacci’s 0.0%.

The Stochastic oscillator’s main and signal lines indicate that the price has greater probabilities to decelerate at the 10 zone.

EURUSD (May 18 2016)

Alternative Scenario

Alternatively, in the scenario where the bulls are able to place greater pressures and the pair breaks above the 1.1369 area, the price could rise to 1.1462 Fibonacci’s 61.8%.

Today’s Major Announcements

  • Euzo zone’s Non-Monetary Policy ECB Meeting, the Consumer Price Index (YoY) (Apr), and the Consumer Price Index – Core (YoY) (Apr) releases are expected to have a strong impact on the euro
  • The FOMC Minutes release is expected to have a strong impact on the U.S. dollar

Synopsis

  • Probable trend (Bearish): 1.1310
  • Bearish take profit target: 1.1213
  • Stop loss target: 1.1369
  • Alternative trend (Bullish): 1.1369
  • Bullish take profit target: 1.1462