The upside pressures on the pair got more tensed since the 15th of July 2016 where the price climbed from as low as 1.1041 to as high as 1.1082.
The bulls took control over the pair by 40 pips to their favour, a movement with good gains for the buyers and losses for the sellers.
Probable Scenario
The latest stabilization of the price close to the 1.1082 zone, which is today’s major pivot point level, is a good indication that the bulls could likely exert further momentum to boost the price upwards.
Stochastic oscillators’ formation signals that a probable bullish retracement, close to the 50 level, has greater chances to occur.
In the event where the pair escalates, the buyers could set their take profit target at 1.1147.
Alternative Scenario
Alternatively, a bearish break-out below the 1.1041 zone could signal that the sellers may exert far greater pressures to force the price to lower areas such as the 1.0975.
Today’s Major Announcements
- Germany’s ZEW Survey – Economic Sentiment (Jul) and the ZEW Survey – Current Situation (Jul), and the euro zone’s ZEW Survey – Economic Sentiment (Jul) releases are expected to have a medium impact on the euro
- U.S.’s Housing Starts (MoM) (Jun) and the Building Permits (MoM) (Jun) releases are expected to have a medium influence on the U.S. dollar
Synopsis
- Probable trend (Bullish): 1.1082
- Bullish take profit target: 1.1147
- Stop loss target: 1.1041
- Alternative trend (Bearish): 1.1041
- Bearish take profit target: 1.0975