The EURUSD stabilized close to the 1.0904 zone, Fibonacci’s 161.8%, where the sellers will likely place more pressures to take control of the price.

The price, since the 20th of October 2016, has been aggressively oscillating within a downside formation between the range of 1.1039 and 1.0904 respectively.

Probable Scenario

The latest formation and stabilization close to the 1.0904 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 1.0816 Fibonacci’s 261.8%.

The Stochastic oscillator’s main and signal lines indicate that the price has greater probabilities to decelerate at the 60 zone.

eurusd-oct-26-2016

Alternative Scenario

Alternatively, in the scenario where the bulls are able to place greater pressures and the pair breaks above the 1.0952 area, the price could rise to 1.1039 Fibonacci’s 0.0%.

Today’s Major Announcements

  • Germany’s Gfk Consumer Confidence Survey (Nov) release is expected to have a medium influence on the euro
  • The Goods Trade Balance (Sep), the Markit PMI Composite (Oct), the Markit Services PMI (Oct), the New Home Sales (MoM) (Sep), and the New Home Sales Change (MoM) (Sep) releases are expected to have a medium influence on the U.S. dollar

Synopsis

·         Probable trend (Bearish): 1.0904

·         Bearish take profit target: 1.0816

·         Stop loss target: 1.0952

·         Alternative trend (Bullish): 1.0952

·         Bullish take profit target: 1.1039