Analysis of EUR/USD divergence for March 29. The pair is ready to roll back up

4h

wgFauQYgMC6L0Qo4JrOX9ic-pAp9vCygS6NkjP4f

As seen on the 4-hour chart, the EUR/USD pair continues the process of falling in the direction of the retracement level of 0.0% (1.1177). The bullish divergence in the CCI indicator allows traders to expect the pair to reverse in favor of the euro currency and some growth in the direction of the retracement level of 23.6% (1.1269). Fixing the pair's rate above the Fibo level of 23.6% will increase the likelihood of continued growth of quotations in the direction of the next retracement level of 38.2% (1.1328).

The Fibo grid is based on the grounds of the extremums from January 10, 2019, and March 7, 2019.

Daily

7PMVnnx8rdP-wU7pGQTp2oemtrgPUYF0q1EOfHe8

As seen on the 24-hour chart, the pair settled below the Fibo level of 127.2% (1.1285). However, on the 4-hour chart, bullish divergence allows some growth to be expected. Thus, the fall in quotations can be continued in the direction of the retracement level of 161.8% (1.0941) after working off or canceling the bullish divergence. The closing of quotations on March 29 above the Fibo level of 127.2% will work in favor of the EU currency and the start of growth in the direction of the retracement level of 100.0% (1.1553).

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

Trading recommendations:

Buy deals on EUR/USD pair can be opened with the target at 1.1269 and a stop-loss order under the current bullish divergence low.

Sell deals on EUR/USD pair can be opened with the target at 1.1177 if the pair completes the last low divergence.

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