The EURUSD stabilized slightly above the 1.1179 zone, Fibonacci’s 261.8%, where the sellers will likely resume their pressures to take control over the price.

The price, since the 11th of May 2016, has been aggressively oscillating within a bearish formation between the range of 1.1446 and 1.1221 respectively.

Probable Scenario

The latest formation and stabilization close to the 1.1179 level is a good indication that the sellers may take control over the pair in today’s trading session as well.

In the event where the pair drops and the sellers take over, the price could decline to 1.1078 Fibonacci’s 423.6%.

The Stochastic oscillator’s main and signal lines indicate that the price has greater probabilities to decelerate at the 20 zone.

EURUSD (May 19 2016)

Alternative Scenario

Alternatively, in the scenario where the bulls are able to place greater pressures and the pair breaks above the 1.1246 area, the price could rise to 1.1349 Fibonacci’s 0.0%.

Today’s Major Announcements

  • The ECB Monetary Policy Meeting Accounts release is expected to have a strong impact on the euro
  • The Chicago Fed National Activity Index (Apr), the Initial Jobless Claims (May 13), the Philadelphia Fed Manufacturing Survey (May), the Fed’s Stanley Fischer speech, and the CB Leading Indicator (MoM) (Apr) releases are expected to have a medium impact on the U.S. dollar

Synopsis

  • Probable trend (Bearish): 1.1179
  • Bearish take profit target: 1.1078
  • Stop loss target: 1.1246
  • Alternative trend (Bullish): 1.1246
  • Bullish take profit target: 1.1349