Analysis of the divergence of EUR / USD for January 8. Bearish divergence works in favor of the US dollar.

4h

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The EUR / USD currency pair reversed in favor of the US currency after the formation of a bearish divergence at the CCI indicator and a return to the correction level of 38.2% - 1.1446. The closing of quotes on January 8 under the Fibo level of 38.2% will work in favor of continuing the fall of the pair in the direction of the next correction level of 23.6% - 1.1358. The rebound of the pair from the Fibo level of 38.2% will make it possible to expect a turn in favor of the EU currency and the resumption of growth in the direction of the correction level of 50.0% - 1.1517.

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 continues to trade along the correction level of 127.2% - 1.1285, maintaining growth prospects in the direction of 100.0% - 1.1553. There are no ripening divergences on January 8th. Rebounding quotes from the Fibo level of 100.0% will make it possible to expect a reversal in favor of the US currency and a slight drop in the direction of the correction level of 127.2%. Fixing the pair above the Fibo level of 100.0% will increase the chances of further growth in the direction of the next correction 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.

Sales of the EUR / USD currency pair can be made with the target of 1.1358 with a Stop Loss order above the Fibo level of 38.2% if the pair closes below the correction level of 1.1446.

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