Analysis of the divergence of EUR / USD for December 18th. Euro is ready for growth but hardly higher than 1.1420

4h

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The EUR / USD currency pair reversed around the level of 1.1269 in favor of the European currency and the close above the fibo level of 100.0% - 1.1303. As a result, on December 18, the growth process can be continued in the direction of the correction level of 76.4% - 1.1423. There is no indicator of the emerging divergences today. Fixing the rate of the pair below the Fibo level of 100.0% will work in favor of the US dollar and resuming the fall in the direction of the correctional level of 127.2% - 1.1162.

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 currency pair rebounded from the correctional level of 127.2% - 1.1285 and a turn in favor of the EU currency. As a result, the growth of quotations began and can be continued in the direction of the correction level of 100.0% - 1.1553. Fixing quotations of the pair below the Fibo level of 127.2% can be interpreted as a reversal in favor of the American dollar and expect a resumption of the fall in the direction of the correctional level of 161.8% - 1.0941.

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

Recommendations to traders:

Purchases of the EUR / USD currency pair can be made now with a target of 1.1423 and a Stop Loss order below the Fibo level of 100.0% since the pair completed the closure above the level of 1.1303.

Sales of the EUR / USD currency pair can be made with the target 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 (or 1.1269) (hourly chart).

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