4h
The EUR / USD currency pair performed a new U-turn in favor of the US currency, after the formation of a bearish divergence at the CCI indicator, and started a new fall in the direction of the correction level of 100.0% - 1.1303. The end of the pair's exchange rate on December 11 from the Fibo level of 100.0% will allow traders to count on a reversal in favor of the EU currency and a return to the correction level of 76.4% - 1.1423. Fixing quotes under the Fibo level of 100.0% will increase the chances of a further fall in the direction of the next correction level of 127.2% - 1.1162.
The Fibo grid is built on extremes from August 15, 2018, and September 24, 2018.
Daily
On the 24-hour chart, after rebounding from the Fibo level of 127.2% - 1.1285, the currency pair retains the possibility to continue growth in the direction of the correction level of 100.0% - 1.1553. There is no indicator of the emerging divergences today. Fixing the pair under the correction level of 127.2% can be interpreted as a reversal in favor of the US dollar and the resumption of the fall in the direction of the correctional level of 161.8% is expected to be 1.0941.
The Fibo gird is built on extremums from November 7, 2017, and February 16, 2018.
Recommendations to traders:
New purchases of the EUR / USD currency pair can be made with the target of 1.1423 and a Stop Loss order below the Fibo level of 100.0% if the pair bounces off the level of 1.1303.
The EUR / USD currency pair can be sold now with a target of 1.1303 with a Stop Loss order above the Fibo level of 76.4%, as the pair closed below the correction level of 1.1423 (hourly chart) to form a bearish divergence.
The material has been provided by InstaForex Company - www.instaforex.com