Analysis of the divergence of EUR / USD for March 12. A bearish divergence prepares the euro for a new fall
The EUR / USD pair on the 4-hour chart, after fixing above the correction level of 100.0% - 1.1216, continue the process of growth in the direction of the correctional level of 76.4% - 1.1299. On March 12, a bearish divergence is on the CCI indicator. Its education will allow traders to count on a reversal in favor of the American currency and a return to the Fibo level of 100.0%. Closing quotes of the pair below the Fibo level of 100.0% will increase the probability of a further fall towards the next correction level of 127.2% - 1.1120.
The Fibo grid was built on extremes from November 12, 2018, and January 10, 2019.
On the 24-hour chart, the pair closed below the correction level of 127.2% - 1.1285. Thus, on this graph, it is more preferable to resume the fall in the direction of the correctional level of 161.8% - 1.0941. There is no indicator of the emerging divergences today. Closing the pair above the Fibo level of 127.2% will work in favor of the EU currency and the resumption of growth in the direction of the correction level of 100.0% - 1.1553.
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 target of 1.1299, as the pair completed closing above the level of 1.1216, and a Stop Loss order with a correction level of 100.0%, and hold them until a bearish divergence is formed.
Sales of the EUR / USD pair can be carried out with targets at 1.1216 and 1.1120 if a bearish divergence is formed or the pair rebounds from the level of 1.1299.The material has been provided by InstaForex Company - www.instaforex.com