The pair stabilized slightly above the 1.1195 zone, Fibonacci’s 261.8%, where the sellers will likely place pressures to resume the lead on the EURUSD.

The price, since the 17th of May 2016, has been mostly oscillating between the bearish range of 1.1348 and 1.1195 respectively.

Probable Scenario

The latest formation and stabilization close to the 1.1195 level is a good indication that the sellers may take control over the pair for today’s trading session.

In the event where the pair drops and the sellers take over, the price could decline to 1.1138.

The Stochastic oscillator indicates that the bearish pressures could get more tensed and that the price has greater probabilities to decelerate.

EURUSD (May 20 2016)

Alternative Scenario

Alternatively, in the scenario where the bulls are able to place greater pressures and the pair breaks above the 1.1233 area, the price could rise to 1.1292 Fibonacci’s 0.0%.

Today’s Major Announcements

  • Germany’s Producer Price Index (MoM) (Apr) and the Producer Price Index (YoY) (Apr) releases are expected to have a medium impact on the euro
  • The Baker Hughes US Oil Rig Count release is expected to have a medium impact on the U.S dollar

Synopsis

  • Probable trend (Bearish): 1.1195
  • Bearish take profit target: 1.1138
  • Stop loss target: 1.1233
  • Alternative trend (Bullish): 1.1233
  • Bullish take profit target: 1.1292