The EURUSD stabilized close to the 1.0839 zone, Fibonacci’s 261.8%, where the sellers will likely place pressures to take control over the price.

The price, since the 20th of October 2016, has been mostly oscillating within a downside pattern between the range of 1.1036 and 1.0839 respectively.

Probable Scenario

The latest formation and stabilization close to the 1.0839 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 1.0718.

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

eurusd-oct-24-2016

Alternative Scenario

Alternatively, in the scenario where the bulls are able to place greater pressures and the pair breaks above the 1.0915 area, the price could rise to 1.1036 Fibonacci’s 0.0%.

Today’s Major Announcements

  • Germany’s Markit PMI Composite (Oct), the Markit Services PMI (Oct), the Markit Manufacturing PMI (Oct), and the euro zone’s Markit PMI Composite (Oct), Markit Services PMI (Oct), and the Markit Manufacturing PMI (Oct) announcements are expected to have a medium influence on the euro
  • The Chicago Fed National Activity Index (Sep) and the Markit Manufacturing PMI (Oct) releases are expected to have a medium influence on the U.S. dollar

Synopsis

·         Probable trend (Bearish): 1.0839

·         Bearish take profit target: 1.0718

·         Stop loss target: 1.0915

·         Alternative trend (Bullish): 1.0915

·         Bullish take profit target: 1.1036