The EURUSD stabilized close to the 1.0988 zone, Fibonacci’s 161.8%, where the sellers will likely place pressures to take control over the price.

The price, since the 18^th of July 2016, has been mostly oscillating within a downside pattern between the range of 1.1085 and 1.0988 respectively.

Probable Scenario

The latest formation and stabilization close to the 1.0988 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 1.0927 Fibonacci’s 261.8%.

The Stochastic oscillator’s main and signal lines indicate that the price has greater probabilities to decelerate at the 60 zone.

Alternative Scenario

Alternatively, in the scenario where the bulls are able to place greater pressures and the pair breaks above the 1.1024 area, the price could rise to 1.1085 Fibonacci’s 0.0%.

Today’s Major Announcements

• Germany’s Producer Price Index (MoM) (Jun) and the Producer Price Index (YoY) (Jun) releases are expected to have a medium impact on the euro
• The EIA Crude Oil Stocks Change (Jul 15) is expected to have a medium impact on the U.S. dollar

Synopsis

• Probable trend (Bearish): 1.0988
• Bearish take profit target: 1.0927
• Stop loss target: 1.1024
• Alternative trend (Bullish): 1.1024
• Bullish take profit target: 1.1085