The EURUSD stabilized slightly below the 1.1072 zone, Fibonacci’s 100.0%, where the sellers will likely place pressures to take control over the price.
The price, since the 5th of July 2016, has been oscillating within a bearish formation between the range of 1.1185 and 1.1001 respectively.
Probable Scenario
The latest formation and stabilization close to the 1.1072 level is a good indication that the sellers may take control over the pair in today’s trading session.
In the event where the pair drops and the sellers take over, the price could decline to 1.1001 Fibonacci’s 161.8%.
The Stochastic oscillator’s main and signal lines indicate that the price has greater probabilities to decelerate at the 20 zone.
Alternative Scenario
Alternatively, in the scenario where the bulls are able to place greater pressures and the pair breaks above the 1.1114 area, the price could rise to 1.1185 Fibonacci’s 0.0%.
Today’s Major Announcements
- Germany’s 10-y Bond Auction, euro zone’s Industrial Production s.a. (MoM) (May) and Industrial Production w.d.a (YoY) (May) releases are expected to have a medium impact on the euro
- The Import Price Index (MoM) (Jun), the Export Price Index (MoM) (Jun), the Import Price Index (YoY) (Jun), the Export Price Index (YoY) (Jun), the Monthly Budget Statement (Jun) and the Fed’s Beige Book releases are expected to have a medium impact on the U.S. dollar
Synopsis
- Probable trend (Bearish): 1.1072
- Bearish take profit target: 1.1001
- Stop loss target: 1.1114
- Alternative trend (Bullish): 1.1114
- Bullish take profit target: 1.1185