The upside pressures on the pair got more tensed since the 6th of September 2016 where the price climbed from as low as 1.1144 to as high as 1.1255.
The bulls took control of the pair by 100 plus pips to their favour, a movement with great gains for the buyers and losses for the sellers.
Probable Scenario
The latest stabilization of the price close to the 1.1255 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 80 level, has greater chances to occur.
In the event where the pair escalates, the buyers could set their take profit target at 1.1324.
Alternative Scenario
Alternatively, a bearish break-out below the 1.1213 zone could signal that the sellers may exert far greater pressures to force the price to lower areas such as the 1.1144.
Today’s Major Announcements
- Germany’s Industrial Production n.s.a w.d.a (YoY) (Jul) and the 10 – y Bond Auction releases could have a medium impact on the euro
- U.S.’s MBA Mortgage Applications (Sep 2) and the Fed’s Beige Book releases are expected to have a medium influence on the U.S. dollar
Synopsis
- Probable trend (Bullish): 1.1255
- Bullish take profit target: 1.1324
- Stop loss target: 1.1213
- Alternative trend (Bearish): 1.1213
- Bearish take profit target: 1.1144