The EURUSD stabilized close to the 1.1108 zone, Fibonacci’s 161.8%, where the sellers will likely place pressures to take control over the price.
The price, since the 2nd of August 2016, has been aggressively oscillating within a bearish formation between the range of 1.1232 and 1.1156 respectively.
Probable Scenario
The latest formation and stabilization close to the 1.1108 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 1.1030 Fibonacci’s 261.8%.
The Stochastic oscillator’s main and signal lines indicate that the price has greater probabilities to decelerate at the 40 zone.
Alternative Scenario
Alternatively, in the scenario where the bulls are able to place greater pressures and the pair breaks above the 1.1156 area, the price could rise to 1.1232 Fibonacci’s 0.0%.
Today’s Major Announcements
- The Economic Bulletin release is expected to have a medium impact on the euro
- The Initial Jobless Claims (Jul 29) and the Factory Orders (MoM) (Jun) releases are expected to have a medium impact on the U.S. dollar
Synopsis
- Probable trend (Bearish): 1.1108
- Bearish take profit target: 1.1030
- Stop loss target: 1.1156
- Alternative trend (Bullish): 1.1156
- Bullish take profit target: 1.1232