EURUSD Trades In Narrow Range

The euro and the U.S. dollar are mostly oscillating within a stable formation between the range of 1.0710 and 1.0765 respectively.

Both the bulls and the bears have placed equal pressures in their attempts of taking control over the price.

The upside pressures led the pair, in some cases, slightly above the 1.0765level whereas the downside ones forced the price down to the 1.0710 zone.

Probable Scenario

In the scenario where the EURUSD breaks and stabilizes above the 1.0765 area, the price could escalate as high as 1.0827, Fibonacci 50.0%, and 1.0856, Fibonacci 61.8%.

The stochastic oscillator, even though the price has already approached close to the 80 level, indicates that the pair has greater chances of appreciating to upper levels.

EURUSD

Alternative Scenario

Alternatively, should the sellers take the lead and force the price below the 1.0710 area, the pair could decline as low as 1.0630.

Today’s Major Announcements

  • The Markit Services PMI (Dec) announcement is expected to have a strong impact on the euro
  • The FOMC Minutes release is expected to have a strong impact on the U.S. dollar

Synopsis

  • Probable trend (Bullish): 1.0765
  • Bullish take profit targets: 1.0827, 1.0856
  • Stop loss target: 1.0710
  • Alternative trend (Bearish): 1.0710

Bearish take profit target: 1.0630

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Jacob Maslow

A native New Yorker, he spent the first part of his career as a Payroll Manager but later turned his attention to his true passion, financial writing. Now married with five children, Jacob works from his home.

About the Author

mm
Jacob Maslow
A native New Yorker, he spent the first part of his career as a Payroll Manager but later turned his attention to his true passion, financial writing. Now married with five children, Jacob works from his home.