Analysis of the divergence of EUR / USD for January 14. Strong fall signal

4h

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The currency pair EUR / USD reversed in favor of the US currency and closed below the correction level of 50.0% - 1.1517, as well as falling to the correctional level of 38.2% - 1.1446. Quoting quotes on January 14 from the Fibo level of 38.2% will allow traders to expect a turn in favor of the euro and some growth in the direction of the correction level of 50.0%. Fixing the rate of the pair below the Fibo level of 38.2% will increase the likelihood of a further fall in the direction of the next correction level of 23.6% - 1.1358.

The Fibo grid is built on extremes from September 24, 2018, and November 12, 2018.

Daily

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On the 24-hour chart, the currency pair also made a U-turn in favor of the American currency after a rebound from the Fibo level of 100.0% - 1.1553. As a result, the fall in quotations can be continued in the direction of the correction level of 127.2% - 1.1285. Maturing divergences in the current chart are not observed in any indicator. Fixing quotations above the Fibo level of 100.0% can be interpreted as a reversal in favor of the EU currency and we expect a resumption of growth in the direction of the correctional level of 76.4% - 1.1789.

The Fibo grid is built on extremums 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 1.1517 and a Stop Loss order under the Fibo level of 38.2% if the pair bounces off the level of 1.1446.

New sales of the EUR / USD currency pair will be possible with the goal of 1.1358 with a Stop Loss order above the Fibo level of 38.2% if the pair closes below the level of 1.1446.

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