Analysis of the divergence of EUR / USD for October 8. The bearish divergence returns the pair to the main trend

4h

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A new bearish divergence at the CCI indicator allowed the EUR / USD currency pair to make a turn in favor of the American currency and begin the process of falling in the direction of the correctional level of 61.8% - 1.1497. Fixing the pair on October 8 under the Fibo level of 61.8% will increase the likelihood of a further fall towards the next level of correction 76.4% - 1.1424. The end of the quotations from the Fibo level of 61.8% will work in favor of the EU currency and some growth in the direction of the correction level of 50.0% - 1.1558.

The Fibo grid is built on extremes from August 15, 2018, and September 24, 2018.

Daily

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On the 24-hour chart, the pair quotes were consolidated below the Fibo level of 100.0% - 1.1553. As a result, the fall in quotations can be continued in the direction of the next level of correction of 127.2% - 1.1285. Over the current chart, no indicator has maturing divergences. Fixing the pair above the Fibo level of 100.0% traders will be able to interpret as a reversal in favor of the European currency and expect some increase in the direction of the correction level of 76.4% - 1.1789.

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

Recommendations to traders:

You can make purchases of the EUR / USD currency pair with a target of 1.1558 with a Stop Loss order below the Fibo level of 61.8% if the pair bounces off of the correction level of 1.1497.

Sales of the EUR / USD currency pair can be carried out with the target of 1.1424 with a Stop Loss order above the Fibo level of 61.8% if the pair closes below the correction level of 1.1497.

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