4h
The pair EUR / USD on the 4-hour chart, after the formation of just two bearish divergences from the CCI indicator, executed a turn in favor of the US currency and a drop to the correction level of 38.2% - 1.1639. Quit on July 18 from the Fibo level of 38.2% will allow traders to count on a reversal in favor of the EU currency and some growth in the direction of the corrective level of 50.0% - 1.1680. Brewing divergences are not observed today. Fixing the pair at the Fibo level of 38.2% will increase the likelihood of further fall in the direction of the next correction level of 23.6% - 1.1590.
The Fibo grid is built on the extremes of June 14, 2018, and June 21, 2018.
Daily
On the 24-hour chart, the pair executed a reversal in favor of the US currency and resumed the decline to the corrective level of 100.0% - 1.1553. The pair's retreat from the Fibo level of 100.0% will allow traders to expect a turn in favor of the euro and some growth in the direction of the correction level of 76.4% - 1.1789. Fixing quotes below the Fibo level of 100.0% will increase the probability of continuing the fall towards the next correction level of 127.2% - 1.1285.
The Fibo grid is built on extremes from November 7, 2017, and February 16, 2018.
Recommendations for traders:
Buy EUR / USD on July 18 will be possible with a target of 1,1680 with a Stop Loss level under the correction level of 38.2% if there is a retreat from the Fibo level of 1.1639.
To sell the EUR / USD pair will be possible with the target of 1,1590, if the closing is carried out under the correction level of 38.2%, with a Stop Loss order above the level of 1.1639.
The material has been provided by InstaForex Company - www.instaforex.com