Analysis of EUR/USD divergence for April 23. The second bearish divergence is preparing the pair to fall

4h

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As seen on the 4-hour chart, the EUR/USD pair just started growing in the direction of the retracement level of 61.8% (1.1281), as the bearish divergence of the CCI indicator was formed. As a result, the pair performed a reversal in favor of the US currency and began the process of returning to the Fibo level of 76.4% (1.1241). The consolidation of the quotes on April 23 under the Fibo level of 76.4% will increase the chances of the pair to continue falling in the direction of the next retracement level of 100.0% (1.1177). Today, the emerging divergence is not observed on any indicator.

The Fibo grid is built according to the extremes of March 7, 2019, and March 20, 2019.

Daily

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As seen on the 24-hour chart, the pair has completed the closing under the retracement level of 127.2% (1.1285). Thus, the fall of the pair on the current chart can be continued in the direction of the retracement level of 161.8% (1.0941). However, we still pay attention to the two previous low pairs, around which a reversal in favor of the European currency can be made. The closing of the pair above the Fibo level of 127.2% can be interpreted as a reversal in favor of the EU currency and expect some growth in the direction of the retracement level of 100.0% (1.1553).

The Fibo grid is built according to the extremes of November 7, 2017, and February 16, 2018.

Forecast for EUR/USD and trading advice:

Buy deals on EUR/USD pair can be opened with the target at 1.1281 if the pair rebounds from the retracement level of 76.4%. The stop loss order should be placed below the level of 1.1241.

Sell deals on EUR/USD pair can be opened with the target at 1.1177 if the pair closes below the level of 76.4%. The stop loss order should be placed above the level of 1.1241.

The material has been provided by InstaForex Company - www.instaforex.com

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