The upside pressures on the pair got more tensed since the 15th of August 2016 where the price climbed from as low as 1.1155 to as high as 1.1375.
The bulls took control over the pair by more than 200 pips to their favour, a movement with superb gains for the buyers and losses for the sellers.
Probable Scenario
The latest stabilization of the price close to the 1.1329 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 30 level, has greater chances to occur.
In the event where the pair escalates, the buyers could set their take profit target at 1.1440.
Alternative Scenario
Alternatively, a bearish break-out below the 1.1262 zone could signal that the sellers may exert far greater pressures to force the price to lower areas such as the 1.1155.
Today’s Major Announcements
- Germany’s Produce Price Index (MoM) (Jul) and Produce Price Index (YoY) (Jul) releases are expected to have a medium impact on the euro
- Baker Hughes US Oil Rig Count release is expected to have a medium influence on the U.S. dollar
Synopsis
- Probable trend (Bullish): 1.1329
- Bullish take profit target: 1.1440
- Stop loss target: 1.1262
- Alternative trend (Bearish): 1.1262
- Bearish take profit target: 1.1155