4h
As seen on the 4-hour chart, the EUR/USD pair fell to the retracement level of 100.0% (1.1177) after the formation of a bearish divergence at the MACD indicator and a rebound from the Fibo level of 76.4% (1.1241). The rebound of quotations on May 3 from the level of 100.0% will allow traders to expect a reversal in favor of the EU currency and some growth in the direction of the retracement level of 76.4%. The consolidation of the pair below the Fibo level of 100.0% will increase the chances for the continuation of the fall in the direction of the retracement level of 127.2% (1.1102).
The Fibo grid is built according to the extremes of March 7, 2019, and March 20, 2019.
Daily
As seen on the 24-hour chart, the pair reached the retracement level of 127.2% (1.1285) quite a bit. Now, it made a turn in favor of the US dollar and resumed the process of falling in the direction of the Fibo level of 161.8% (1.0941). There are no emerging divergences on the current chart. Traders can expect the pair to continue to grow in the direction of the retracement level of 100.0% (1.1553) after the close of quotations above the retracement level of 127.2%.
The Fibo grid is built according to the extremes of November 7, 2017, and February 16, 2018.
Forecast for EUR/USD and trading recommendations:
Buy deals on EUR/USD pair can be opened with the target at 1.1241 if the pair disconnects from the level of 100.0%. The stop loss order should be placed below the level of 1.1177.
Sell deals on EUR/USD pair can be opened with the target at 1.1102 if the pair consolidates below the retracement level of 100.0%. The stop loss order should be placed above the level of 1.1177.
The material has been provided by InstaForex Company - www.instaforex.com