Analysis of EUR/USD divergence for April 12. Bullish divergence helped the euro to grow a little more
As seen on the 4-hour chart, the EUR/USD pair rebounded from the retracement level of 61.8% (1.1281) with a fall in the direction of the Fibo level of 76.4% (1.1241), but the bullish divergence in the CCI indicator worked in favor of the European currency and the resumption of growth. As a result, the pair completed closing above the retracement level of 61.8%, and the growth of quotations can be continued on April 12 in the direction of the Fibo level of 50.0% (1.1313). The closing of the pair under the level of 61.8% can be interpreted as a reversal in favor of the US currency and expect a slight drop in the direction of the retracement level of 76.4%.
The Fibo grid was built on extremums from March 7, 2019, and March 20, 2019.
As seen on the 24-hour chart, the pair still retains the chances of resuming the fall in the direction of the retracement level of 161.8% (1.0941), as it still cannot close above the Fibo level of 127.2% (1.1285). The retreat of quotations from this level will work in favor of the US currency and will allow expecting a fall in the direction of the retracement level of 161.8%. Fixing the pair above the Fibo level of 127.2% will allow traders to continue to grow in the direction of the retracement level of 100.0% (1.1553).
The Fibo grid was built on extremes from November 7, 2017, and February 16, 2018.
Buy deals on EUR/USD pair can be opened with the target at 1.1313 as the pair completed consolidation above the Fibo level of 61.8%. The stop loss order should be placed below the level of 1.1281.
Sell deals on EUR/USD pair can be opened with the target at 1.1241 if the pair completes consolidation below the level of 61.8%. The stop loss order should be placed above the level of 1.1281.The material has been provided by InstaForex Company - www.instaforex.com