The EURUSD has currently stabilized above the 1.1240 zone, Fibonacci’s 100.0%, where the sellers will likely place pressures to take control the price.
The price, since the 18th of August 2016, has been oscillating within a downside formation between the range of 1.1366 and 1.1240 respectively.
Probable Scenario
The latest formation close to the 1.1240 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 1.1162 Fibonacci’s 161.8%.
The Stochastic oscillator’s main and signal lines indicate that the price has greater probabilities to decelerate at the 70 zone.
Alternative Scenario
Alternatively, in the scenario where the bulls are able to place greater pressures and the pair stabilizes above the 1.1289 area, the price could rise to 1.1366 Fibonacci’s 0.0%.
Today’s Major Announcements
- Germany’s IFO – Business Climate (Aug), the IFO – Current Assessment (Aug), and the IFO – Expectations (Aug) releases are expected to have a medium impact on the euro
- The Initial Jobless Claims (Aug 19), the Durable Goods Orders (Jul), the Durable Goods Orders ex Transportation (Jul), the Markit Services PMI (Aug), and the Markit PMI Composite (Aug) releases are expected to have a medium impact on the U.S. dollar
Synopsis
- Probable trend (Bearish): 1.1240
- Bearish take profit target: 1.1162
- Stop loss target: 1.1289
- Alternative trend (Bullish): 1.1289
- Bullish take profit target: 1.1366