The euro and the U.S. dollar are lately oscillating within a bullish formation between the range of 1.1124 and 1.1255 respectively.

Lately, the sellers have placed strong pressures in their attempts of taking control over the price, and managed to force the pair lower, from 1.1255 to 1.1196.

Probable Scenario

In the scenario where the EURUSD resumes above the 1.1212 area, the price could escalate as high as 1.1267, Fibonacci’s 161.8%.

The Stochastic oscillator indicates that the pair has greater chances of appreciating to upper levels at the 30 zone.

eurusd-sep-23-2016

Alternative Scenario

Alternatively, should the sellers take the lead and force the price below the 1.1177 area, the pair could decline as low as 1.1124.

Today’s Major Announcements

  • Germany’s Makit PMI Composite (Sep), the Markit Services PMI (Sep), the Markit Manufacturing PMI (Sep), the euro zone’s Makit PMI Composite (Sep), the Markit Services PMI (Sep), and the Markit Manufacturing PMI (Sep) releases could have a medium impact on the euro
  • The Markit Manufacturing PMI (Sep) and the Baker Hughes US Oil Rig Count releases are expected to have a medium impact on the U.S. dollar

Synopsis

  • Probable trend (Bullish): 1.1212
  • Bullish take profit target: 1.1267
  • Stop loss target: 1.1177
  • Alternative trend (Bearish): 1.1177
  • Bearish take profit target: 1.1124