The upside pressures on the pair got more tensed since the 9th of September 2016 where the price climbed from as low as 1.1212 to as high as 1.1268.
The bulls took control over the pair by more than 50 pips to their favour, a movement with satisfactory gains for the buyers and losses for the sellers.
Probable Scenario
The latest stabilization of the price close to the 1.1240 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 1.1285.
Alternative Scenario
Alternatively, a bearish break-out below the 1.1212 zone could signal that the sellers may exert far greater pressures to force the price to lower areas such as the 1.1168.
Today’s Major Announcements
- Euro zone’s ECB President Draghi’s Speech and ZEW Survey – Economic Sentiment (Sep) releases will likely have a strong impact on the euro
- The 10-Year Note Auction and the Monthly Budget Statement (Aug) releases are expected to have a medium influence on the U.S. dollar
Synopsis
- Probable trend (Bullish): 1.1240
- Bullish take profit target: 1.1285
- Stop loss target: 1.1212
- Alternative trend (Bearish): 1.1212
- Bearish take profit target: 1.1168