Analysis of the divergence of EUR / USD for January 21. In favor of a possible growth says rebound

4h

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The currency pair EUR / USD, despite the formation of two bullish divergences, nevertheless performed a fall to the correction level of 23.6% - 1.1358. Quoting quotes from this level will allow traders to expect a reversal in favor of the European currency and some growth in the direction of the correctional level of 38.2% - 1.1446. New emerging divergences on January 21 is not observed. Closing the pair below the Fibo level of 23.6% will work in favor of continuing to fall in the direction of the next level of 1.1269.

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 fall in quotations of the pair continues in the direction of the correctional level of 127.2% - 1.1285. The release of the pair's course from this Fibo level will make it possible 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 maturing divergences. Fixing the rate under the level of 127.2% will increase the probability of a further fall in the direction of the next Fibo 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 1.1446 and a Stop Loss order below the level of 23.6% since the pair has completed the rebound from the correction level of 1.1358.

New sales of the EUR / USD currency pair will be possible with the goal of 1.1269 with a Stop Loss order above the Fibo level of 23.6% if the pair consolidates below the level of 1.1358.

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