The EURUSD has currently stabilized close to the 1.1201 zone, Fibonacci’s 61.8%, where the sellers will likely place pressures to take control the price.

The price, since the 4th of October 2016, has been oscillating within an upside formation between the range of 1.1137 and 1.1240 respectively.

Probable Scenario

The latest formation close to the 1.1201 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 1.1137 Fibonacci’s 0.0%.

The Stochastic oscillator’s main and signal lines indicate that the price has greater probabilities to decelerate at the 50 zone.

eurusd-oct-6-2016

Alternative Scenario

Alternatively, in the scenario where the bulls are able to place greater pressures and the pair remains above the 1.1240 area, the price could rise to 1.1304 Fibonacci’s 161.8%.

Today’s Major Announcements

  • Germany’s Factory Orders n.s.a (YoY) (Aug), the Markit Construction PMI (Sep), the Markit Retail PMI (Sep), and the Euro zone Retail PMI (Sep) announcements will likely have a medium impact on the euro
  • The Initial Jobless Claims (Oct 1) and the Continuing Claims (Sep 24) releases are expected to have a medium impact on the U.S. dollar

Synopsis

·         Probable trend (Bearish): 1.1201

·         Bearish take profit target: 1.1137

·         Stop loss target: 1.1240

·         Alternative trend (Bullish): 1.1240

·         Bullish take profit target: 1.1304