The EURUSD, after rising aggressively from as low as 1.1324 to as high as 1.1430, has now stabilized slightly above today’s major pivot point area the 1.1387 level.

Stochastic oscillator’s latest formation shows a pattern of a steady appreciation at the 30 level where the pair is expected to retrace to the upside.

Probable Scenario

In the condition where the pair stabilizes above the 1.1387 level and the upside pressures somehow get more tensed, the price could rise to the 1.1516 zone, Fibonacci’s 161.8%.

Should the bulls gain the control over the price in today’s session, then the recent stable formation will be transformed into a bullish promising pattern.

EURUSD (Apr 7 2016)

Alternative Scenario

Alternatively, in the event where the bearish pressures force the pair below the 1.1358 zone, the price could drop to 1.1308.

Today’s Major Announcements

  • The ECB Monetary Policy Meeting Accounts and the ECB President Draghi’s speech releases will likely have a strong impact on the euro
  • The Initial Jobless Claims (Apr 1), the Continuing Jobless Claims (Mar 25), the Consumer Credit Change (Feb) and the Fed’s Yellen Speech releases are expected to have a medium impact on the U.S. dollar

Synopsis

  • Probable trend (Bullish): 1.1387
  • Bullish take profit target: 1.1516
  • Stop loss target: 1.1358
  • Alternative trend (Bearish): 1.1358
  • Bearish take profit target: 1.1308