Analysis of the divergence of EUR / USD for February 8. Bullish divergence predicts growth

4h

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The currency pair EUR / USD consolidated below the correction level of 23.6% - 1.1358. As a result, the process of falling quotations can be continued in the direction of the level of 1.1269. On February 8, bullish divergence at the MACD indicator is still maturing. The education will allow traders to expect a turn in favor of the EU currency and some growth of the pair. Closing the rate above the Fibo level of 23.6% will similarly work in favor of the beginning of growth in the direction of the correction level of 38.2% - 1.1446.

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 the process of falling in the direction of the correctional level of 127.2% - 1.1285. Rebounding the course of the pair from this level will allow traders to count on a turn in favor of the euro currency and some growth in the direction of the correction level of 100.0% - 1.1553. There are no ripening divergences today. Fixing quotes below the Fibo level of 127.2% will increase the chances of the pair to 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:

Purchases of the currency pair EUR / USD can be carried out with a target of 1.1446 if the pair closes above the correction level of 23.6% and a Stop Loss order under 1.1358, especially in combination with the formation of bullish divergence.

New sales of the currency pair EUR / USD can be carried out now with the target of 1.1269, as the pair completed closing below the level of 1.1358 and a Stop Loss order above the level of 1.1358 and left them open until the bullish divergence is formed.

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