4h
The EUR / USD currency pair reversed in favor of the US dollar, after the formation of a bearish divergence in the CCI indicator, but already completed the closing above the correction level of 38.2% - 1.1446. As a result, on January 9, the growth process can be continued in the direction of the next correction level of 50.0% - 1.1517. There is no indicator of the emerging divergences today. Fixing the rate of the pair below the Fibo level of 38.2% can be interpreted as a reversal in favor of the US currency and it is expected to fall in the direction of the level of 23.6% - 1.1358.
The Fibo grid is built on extremes from September 24, 2018, and November 12, 2018.
Daily
On the 24-hour chart, the currency pair continues to trade above the Fibo level of 127.2% - 1.1285, while maintaining the possibility of growth to a correction level of 100.0% - 1.1553. Rebounding quotes from the Fibo level of 100.0% will allow traders to expect a reversal in favor of the US dollar and a slight decline in the direction of the correction level of 127.2%. There are no maturing divergences on the current chart. Closing above the Fibo level of 100.0% will increase the likelihood 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:
Purchases of the EUR / USD currency pair can be made now with a target of 1.1517 and a Stop Loss order below the Fibo level of 38.2% since the pair has completed consolidation above 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