The euro and the U.S. dollar are lately oscillating within a stable formation between the range of 1.1220 and 1.1240 respectively.

The bears have placed strong pressures in their attempts of taking control over the price and managed to force the pair lower, from 1.1289 to 1.1233.

Probable Scenario

In the scenario where the EURUSD rises close to and breaks above the 1.1289 area, the price could escalate as high as 1.1375, Fibonacci’s 61.8%.

The Stochastic oscillator indicates that the pair has greater chances of appreciating to upper levels at the 70 zone.

EURUSD (Apr 25 2016)

Alternative Scenario

Alternatively, should the sellers take the lead and force the price below the 1.1233 area, the pair could decline as low as 1.1181.

Today’s Major Announcements

  • Germany’s IFO – Business Climate (Apr), IFO – Expectations (Apr), and the IFO – Current Assessment (Apr) announcements could have a medium impact on the euro
  • U.S.’s New Home Sales (MoM) (Mar), New Home Sales Change (MoM) (Mar), and the Dallas Fed Manufacturing Business Index (Apr) releases are expected to have a medium impact on the U.S. dollar

Synopsis

  • Probable trend (Bullish): 1.1289
  • Bullish take profit target: 1.1375
  • Stop loss target: 1.1233
  • Alternative trend (Bearish): 1.1233
  • Bearish take profit target: 1.1181