Analysis of the divergence of EUR / USD for October 29. Bearish divergence allows the pair to move to a new fall



The bullish divergence formed by the CCI indicator allowed the pair to turn in favor of the euro and return to the correction level of 76.4% - 1.1422. The end of the quotes from this Fibo level and the formation of a bearish divergence at the CCI indicator worked in favor of the American currency and the resumption of the fall in the direction of the corrective level of 100.0% - 1.1303. A pair of the last divergence peak or a close above the Fibo level of 76.4% will allow you to count on the resumption of growth of quotations in the direction of the correction level of 61.8% - 1.1497.

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



On the 24-hour chart, the pair continues to fall in the direction of the correctional level of 127.2% - 1.1285. Rebounding the pair from the Fibo level of 127.2% will allow traders to expect a reversal in favor of the European currency and some growth towards the correction level of 100.0% - 1.1553. Fixing quotes under the correction level of 127.2% will increase the likelihood of the pair falling further in the direction of the next correction level of 161.8% - 1.0941.

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 1.1497 and a Stop Loss order below the Fibo level of 76.4% if the pair closes above the 1.1422 correction level.

Sales of the EUR / USD currency pair can be carried out now with the goal of 1.1303 with a Stop Loss order above the Fibo level of 76.4%, since the pair completed the rebound from the correction level of 1.1422 and a bearish divergence has formed.

The material has been provided by InstaForex Company -