The EURUSD has currently stabilized slightly above the 1.1162 zone, Fibonacci’s 161.8%, where the sellers will likely place pressures to take control the price.
The price, since the 26th of August 2016, has been oscillating within a downside formation between the range of 1.1340 and 1.1162 respectively.
Probable Scenario
The latest formation close to the 1.1162 level is a good indication that the sellers may take control over the pair in today’s trading session, provided that the price initially drops below the 1.1162 zone.
In the event where the pair drops and the sellers take over, the price could decline to 1.1034 Fibonacci’s 261.8%.
The Stochastic oscillator’s main and signal lines indicate that the price has greater probabilities to decelerate at the 50 zone.
Alternative Scenario
Alternatively, in the scenario where the bulls are able to place greater pressures and the pair breaks above the 1.1241 area, the price could rise to 1.1366 Fibonacci’s 0.0%.
Today’s Major Announcements
- Germany’s Consumer Price Index (YoY) (Aug), the Harmonized Index of Consumer Prices (YoY) (Aug), the Consumer Price Index (MoM) (Aug), and the Harmonized Index of Consumer Prices (MoM) (Aug) releases are expected to have a medium influence on the euro
- The S&P/Case-Shiller Home Price Indices (YoY) (Jun) and the Consumer Confidence (Aug) releases are expected to have a medium impact on the U.S. dollar
Synopsis
- Probable trend (Bearish): 1.1162
- Bearish take profit target: 1.1034
- Stop loss target: 1.1241
- Alternative trend (Bullish): 1.1241
- Bullish take profit target: 1.1366