Analysis of the divergence of EUR / USD for January 24. Three bear divergence, one bullish

4h

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The currency pair EUR / USD, after the formation of a third consecutive bullish divergence, nevertheless performed a reversal in favor of the euro currency and started the growth process in the direction of the correctional level of 38.2% - 1.1446. However, on January 24, there was already a bearish divergence in the CCI indicator, which allows traders to expect a reversal in favor of the US dollar and a resumption of the fall. Closing the pair below the Fibo level of 23.6% will work in favor of continuing to fall towards the 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 process of falling quotations continues in the direction of the Fibo level of 127.2% - 1.1285. Rebounding the pair from this level will allow us to expect a reversal in favor of the European currency and some growth in the direction of the correction level of 100.0% - 1.1553. Maturing divergences in the current chart are not observed in any indicator. Closing quotes below the Fibo level of 127.2% will increase the chances for a further fall in the direction of the next correction level of 161.8% - 1.0941.

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

Recommendations to traders:

New purchases of the currency pair EUR / USD can be made with a target of 1.1446 and a Stop Loss order under the level of 23.6% if the pair completes the last peak of the bearish divergence.

Sales of the currency pair EUR / USD can be made with the target of 1.1269 with a Stop Loss order above the Fibo level of 23.6% if the pair closes below the level of 1.1358.

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