The EURUSD stabilized slightly above the 1.1042 zone, Fibonacci’s 161.8%, where the sellers will likely exert their pressures to take control over the price.

The price, since the 11th of October 2016, has been oscillating within a bearish formation between the range of 1.1140 and 1.1042 respectively.

Probable Scenario

The latest formation and stabilization close to the 1.1042 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 1.0943 Fibonacci’s 261.8%.

The Stochastic oscillator’s main and signal lines indicate that the price has greater probabilities to decelerate at the 55 zone.

eurusd-oct-12-2016

Alternative Scenario

Alternatively, in the scenario where the bulls are able to place greater pressures and the pair breaks above the 1.1103 area, the price could rise to 1.1202 Fibonacci’s 0.0%.

Today’s Major Announcements

  • Germany’s Wholesale Price Index (YoY) (Sep), the Wholesale Price Index (MoM) (Sep), the euro zone’s Industrial Production s.a. (MoM) (Aug), and the Industrial Production w.d.a (YoY) (Aug) releases could have a medium impact on the euro
  • The FOMC Minutes release is expected to have a strong influence on the U.S. dollar

Synopsis

·         Probable trend (Bearish): 1.1042

·         Bearish take profit target: 1.0943

·         Stop loss target: 1.1103

·         Alternative trend (Bullish): 1.1103

·         Bullish take profit target: 1.1202