The downside pressures on the pair got more tensed since the 4th of January 2016 where the price dropped from as high as 1.0935 to as low as 1.0779.
The sellers took control over the pair by more than 150 plus pips to their favour, an astonishing movement with big gains for the bears and huge losses for the bulls.
The latest appreciation or bounce of the price from the 1.0779 zone, to the 1.0838 area which is today’s major pivot point level, is a good indication that the bulls could likely exert a further momentum to boost the price upwards.
Stochastic oscillators’ formation signals that a probable bullish retracement at the 20 level has greater chances to occur.
In the event where the pair escalates, the buyers could set their take profit targets at 1.0876 and 1.0935 respectively.
Alternatively, a bearish break-out below the 1.0838 and the 1.0817 level could signal that the sellers may exert far greater pressures to force the price to lower areas such as the 1.0779 as their first target.
Today’s Major Announcements
- The Consumer Price Index – Core (YoY) (Dec) and the Consumer Price Index (YoY) (Dec) releases are expected to have a strong impact on the euro
- There are no any major announcements on the U.S. dollar
- Probable trend (Bullish):1.0838
- Bullish take profit targets: 1.0876, 1.0935
- Stop loss target: 1.0817
- Alternative trend (Bearish): 1.0817
Bearish take profit target: 1.0779