The EUR / USD pair on the 4-hour chart consolidated above the correction level of 23.6% - 1.1358, which allows traders to expect the pair to continue to grow in the direction of the next correction level of 38.2% - 1.1446. Overlapping divergences on February 27 are not observed in any indicator. Fixing the pair below the Fibo level of 23.6% will work in favor of the American currency and resuming the fall 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 pair continues the process of weak growth in the direction of the correction level of 100.0% - 1.1553. On the current chart, a bearish divergence is on the CCI indicator: the last peak of the indicator has already exceeded the previous one, which does not coincide with the peaks of quotations. Bearish divergence can work in favor of the US dollar and return the pair to the Fibo level of 127.2% - 1.1285. Fixing quotes under this level will increase the likelihood of a fall in the direction of the next correction level of 161.8% - 1.0941.
The Fibo grid is built on extremums from November 7, 2017, and February 16, 2018.
Recommendations to traders:
Purchases of the EUR / USD pair can be carried out now with the goal of 1.1446, as the pair completed closing above the level of 1.1358 and a Stop Loss order below the level of 23.6%, but cautiously, as the bearish divergence is brewing on the 24-hour chart.
Sales of the EUR / USD pair can be made with the target of 1.1269, and with a Stop Loss order above the level of 1.1358, if the pair closes below the Fibo level of 23.6%.The material has been provided by InstaForex Company - www.instaforex.com