4h
The currency pair EUR / USD on the 4-hour chart performed the second fall to the level of 1.1269, but the resulting bullish divergence at the MACD indicator allowed the reversal in favor of the European currency and to start the growth process in the direction of the correctional level of 23.6% - 1.1358. Passing the pair on February 14, the bullish divergence low will work in favor of the US currency and resuming the fall in the direction of the correction level of 0.0% - 1.1219.
The Fibo grid was built on extremums from September 24, 2018, and November 12, 2018.
Daily
On the 24-hour chart, the pair rebounded from the correction level of 127.2% - 1.1285 and immediately returned to it. Thus, we are waiting for either a new rebound from this Fibo level or closing under it. In the first case, a new turn is possible in favor of the euro currency and some growth in the direction of the Fibo level of 100.0% - 1.1553. In the second, the continuation of the fall in the direction of the correctional level of 161.8% - 1.0941. There are no maturing divergences in both plots.
The Fib grid is built on extremums from November 7, 2017, and February 16, 2018.
Recommendations to traders:
Purchases of the EUR / USD pair can be carried out now with the goal of 1.1358, as the pair completed the closing above the level of 1.1269 (with the formation of bullish divergence), and the Stop Loss order below this level.
Sales of the EUR / USD pair can be carried out with a target of 1.1219, if the pair closes under a bullish divergence low, and a Stop Loss order above the level of 1.1269.
The material has been provided by InstaForex Company - www.instaforex.com