Analysis of the divergence of EUR / USD on November 1. Double correction signal

4h

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The EUR / USD currency pair reversed in favor of the European currency after the formation of the bullish divergence at the MACD indicator and the rebound from the correction level of 100.0% - 1.1303. As a result, the process of growth began in the direction of the correctional level of 76.4% - 1.1422. New emerging divergences on November 1 is not observed in any indicator. Fixing the pair below the Fibo level of 100.0% will work in favor of the US currency and resuming the fall in the direction of the correction level of 127.2% - 1.1162.

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

Daily

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On the 24-hour chart, the process of falling quotations continues in the direction of the correctional level of 127.2% - 1.1285. Quoting the quotations from the Fibo level of 127.2% will allow traders to count on a turn in favor of the EU currency and some growth in the direction of the correction level of 100.0% - 1.1553. There are no ripening divergences today. Closing the pair below the Fibo level of 127.2% will increase the probability of a further fall 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:

Purchases of the EUR / USD currency pair can be carried out now with the target of 1.1422 and a Stop Loss order under the Fibo level of 100.0%, since the pair has rebounded from the correction level of 1.1303 with the formation of bullish divergence.

New sales of the EUR / USD currency pair will be possible with the goal of 1.1162 with a Stop Loss order above the Fibo level of 100.0%, if the pair closes below the correction level of 1.1303.

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