The EURUSD has currently stabilized slightly above the 1.0963 zone, Fibonacci’s 100.0%, where the sellers will likely place pressures to take control the price.

The price, since the 18th of October 2016, has been oscillating within a downside formation between the range of 1.1024 and 1.0963 respectively.

Probable Scenario

The latest formation close to the 1.0963 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 1.0963 zone.

In the event where the pair drops and the sellers take over, the price could decline to 1.0924 Fibonacci’s 161.8%.

The Stochastic oscillator’s main and signal lines indicate that the price has greater probabilities to decelerate at the 75 zone.

eurusd-oct-20-2016

Alternative Scenario

Alternatively, in the scenario where the bulls are able to place greater pressures and the pair breaks above the 1.0986 area, the price could rise to 1.1024 Fibonacci’s 0.0%.

Today’s Major Announcements

  • The ECB Interest Rate Decision (Oct 20), the ECB Deposit Rate Decision, and the ECB Monetary Policy Statement and Press Conference releases could have a strong impact on the euro
  • The Initial Jobless Claims (Oct 14) and the Philadelphia Fed Manufacturing Survey (Oct) releases are expected to have a medium impact on the U.S. dollar

Synopsis

·         Probable trend (Bearish): 1.0963

·         Bearish take profit target: 1.0924

·         Stop loss target: 1.0986

·         Alternative trend (Bullish): 1.0986

·         Bullish take profit target: 1.1024