The pair is oscillating, more or less, within a stable formation as the bulls have managed to withhold the price close to the 1.1237 level.

The price has initially dropped, since the 18th of May 2016, from as high as 1.1292 to as low as 1.1181.

Stabilization and minor bullish attempts are surfacing again slightly above the 1.1207 level.

Probable Scenario

In the condition where the bulls are able to withhold the price close to the 1.1237 level and exert greater pressures, the pair could appreciate to 1.1292.

Similarly, the Stochastic oscillator indicates that the price has greater probabilities to escalate at the 55 level.

Alternative Scenario

In contrast, in the scenario where the pair drops to the 1.1207 area, the bears may place more pressures, and the price could decelerate to 1.1181.

Today’s Major Announcements

• Germany’s GDP w.d.a (YoY) (Q1), the GDP s.a (QoQ) (Q1), the GDP n.s.a (YoY) (Q1), the ZEW Survey – Current Situation (May), the ZEW Survey Economic Sentiment (May), Eurozone’s – Economic Sentiment (May), and the Eurogroup meeting releases will likely have a medium impact on the euro

• U.S.’s New Home Sales (MoM) (Apr) and the New Home Sales Change (MoM) (Apr) releases are expected to have a medium impact on the U.S. dollar

Synopsis

• Probable trend (Bullish): 1.1237
• Bullish take profit target: 1.129
• Stop loss target: 1.1207
• Alternative trend (Bearish):1.1207
• Bearish take profit targets: 1.1181