Analysis of the divergence of EUR / USD on February 25. The couple can not find strength for further growth
The EUR / USD pair on a 4-hour chart performed a new return to the correction level of 23.6% - 1.1358 after the formation of a bullish divergence in the CCI indicator. The closing of quotations of the pair above the Fibo level of 23.6% will work in favor of continuing growth towards the next level of correction 38.2% - 1.1446. Passing the pair of the last divergence low on February 25 will allow us to expect some drop in prices in the direction of 1.1269.
The Fibo grid was built on extremums from September 24, 2018 and November 12, 2018.
On the 24-hour chart, the couple rebounded from the correctional level 127.2% - 1.1285 and began the process of growth in the direction of the Fibo level 100.0% - 1.1553. There are no maturing divergences on the current chart. Fixing quotes below the level of 127.2% will be interpreted as a reversal of the pair in favor of the American currency, and traders can expect a slight decline in the direction of the correction level of 161.8% - 1.0941.
The Fib net is built on extremums from November 7, 2017 and February 16, 2018.
Recommendations to traders:
New purchases of the EUR / USD pair will be possible with the goal of 1.1446 if the pair closes above the level of 1.1358 and a Stop Loss order below the level of 23.6%.
Sales of the EUR / USD pair can be carried out with the target of 1.1269, and with a Stop Loss order above the level of 1.1358, if the pair completes the last low divergence.The material has been provided by InstaForex Company - www.instaforex.com