4h
The currency pair EUR / USD on the 4-hour chart made a return to the correction level of 61.8% - 1.1605 after the formation of the bearish divergence of the MACD indicator. Quit of quotes from the level of Fibo 61.8% worked in favor of the European currency and the resumption of growth. As a result, on August 28, the growth process can be continued in the direction of the corrective level of 100.0% - 1.1791. The consolidation of the pair's rate under the Fibo level of 76.4% can be interpreted as a reversal in favor of the US dollar and expect a slight drop towards the correction level of 61.8%.
The Fibo grid is built on extremes from July 9, 2018 and August 15, 2018.
Daily
On the 24-hour chart, the pair completed the closing above the correction level of 100.0% - 1.1553. As a result, the pair's growth continues in the direction of the next correction level of 76.4% - 1.1789. Today, there is no visible divergence in any indicator. The retracement of the rate from the Fibo level of 76.4% will allow traders to count on a reversal in favor of the US currency and a slight drop towards the correction level of 100.0% - 1.1553. The consolidation of quotes under the Fibo level of 100.0% will similarly work in favor of the beginning of the fall of the pair.
The Fibo grid is built on extremes from November 7, 2017, and February 16, 2018.
Recommendations for traders:
Purchases of the EUR / USD pair can now be carried out with a target of 1,1791 with a stop loss order under the Fibo level of 76.4%, since the pair completed the closing above the correction level of 1.1675.
Sales of the EUR / USD pair will be possible with the target of 1,1605 if the pair completes the closing under the Fibo level of 76.4%, with a Stop Loss order above 1.1675.
The material has been provided by InstaForex Company - www.instaforex.com