Analysis of EUR/USD divergence for April 4. The euro bounced off its lows

4h

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As seen on the 4-hour chart, the EUR / USD pair performed a reversal in favor of the European currency after the formation of the bullish divergence at the MACD indicator and a return to the retracement level of 76.4% (1.1241). The retreat of quotations from this level on April 4 will allow traders to count on the pair's reversal in favor of the US dollar and resuming the fall in the direction of the retracement level of 100.0% (1.1177). Closing the pair above the Fibo level of 76.4% will increase the probability of continued growth towards the level of 61.8% (1.1281).

The Fibo grid is built on extremes from March 7, 2019, and March 20, 2019.

Daily

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As seen on the 24-hour chart, the pair maintains the chances for a further fall towards the retracement level of 161.8% (1.0941). However, the previous low again did not let the quotes below itself. On the 4-hour chart, there was a reversal in favor of the euro, which could lead to a similar reversal on the 24-hour chart. Fixing the pair's rate above the Fibo level 127.2% (1.1285) will increase the chances for some growth in the direction of the retracement level of 100.0% (1.1553).

The Fibo grid is built on extremums from November 7, 2017, and February 16, 2018.

Trading advice:

Buy deals on EUR/USD pair can be opened with the target at 1.1281 if the pair closes above the 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 rebounds from the retracement 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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