The EUR / USD pair on the 4-hour chart after the formation of a new bearish divergence at the indicator CCI performed a reversal in favor of the US dollar and a return to the correctional level of 23.6% - 1.1358. The end of quotes from this Fibo level will allow traders to count on a turn in favor of the EU currency and the resumption of growth in the direction of the correction level of 38.2% - 1.1446. Fixing the pair below the Fibo level of 23.6% will increase the likelihood of a further fall towards the level of 1.1269.
The Fibo grid is built on extremes from September 24, 2018, and November 12, 2018.
On a 24-hour chart, a bearish divergence allows us to expect a reversal in favor of the American currency and a slight drop in the direction of the correctional level of 127.2% - 1.1285. However, the passage of the last divergence peak will work in favor of the euro currency and continued growth in the direction of the correction level of 100.0% - 1.1553. Fixing quotes below the Fibo level of 127.2% will increase the probability of a further 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 with the target of 1.1446 if the pair disconnects from the level of 1.1358, and the Stop Loss order is below the level of 23.6%, but be careful, as there is a bearish divergence 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