The pair is oscillating within a stable formation as the buyers have managed to hold the price between the 1.1058 zone and the 1.0985 level.

The price has initially dropped, since the 10th of October 2016, from as high as 1.1150 to as low as 1.0985.

Stabilization and minor bullish attempts are surfacing again slightly above the 1.0985 level.

Probable Scenario

In the condition where the bulls are able to withhold the price close to the 1.0985 level and exert greater pressures, the pair could appreciate to 1.1058.

Similarly the Stochastic oscillator indicates that the price has greater probabilities to escalate at the 40 level.

eurusd-oct-19-2016

Alternative Scenario

In contrast, in the scenario where the pair drops to the 1.0940 area, the bears may place more pressures, and the price could decelerate to 1.0865.

Today’s Major Announcements

  • There are no any releases on the euro
  • The Housing Starts (MoM) (Sep) and the Building Permits (MoM) (Sep) releases are expected to have a medium influence on the U.S. dollar

Synopsis

·         Probable trend (Bullish): 1.0985

·         Bullish take profit target: 1.1058

·         Stop loss target: 1.0940

·         Alternative trend (Bearish): 1.0940

·         Bearish take profit targets: 1.0865