The upside pressures on the pair got more tensed since the 4th of October 2016 where the price climbed from as low as 1.1136 to as high as 1.1240.
The bulls took control over the pair by more than 100 pips to their favour, a movement with satisfactory gains for the buyers but 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 60 level, has greater chances to occur.
In the event where the pair escalates, the buyers could set their take profit target at 1.1304.
Alternative Scenario
Alternatively, a bearish break-out below the 1.1201 zone could signal that the sellers may exert far greater pressures to force the price to lower areas such as the 1.1136.
Today’s Major Announcements
- The euro zone’s Markit Services PMI (Sep) and Germany’s 10-y Bond Auction announcements could have a medium impact the euro
- The ADP Employment Change (Sep), the Trade Balance (Aug), the Markit Services (PMI) (Sep), the Markit PMI Composite (Sep), the ISM Non-Manufacturing PMI (Sep), and the Factory Orders (MoM) (Aug) releases are expected to have a medium influence on the U.S. dollar
Synopsis
· Probable trend (Bullish): 1.1240
· Bullish take profit target: 1.1304
· Stop loss target: 1.1201
· Alternative trend (Bearish): 1.1201
· Bearish take profit target: 1.1136