Analysis of EUR/USD divergences for May 1st. The bearish divergence could send the euro down again.

4h

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As seen on the 4-hour chart, the EUR/USD pair continues the process of growth in the direction of the retracement level of 76.4% (1.1241). On May 1, a bearish divergence is brewing at the MACD indicator. The last peak of quotations is below the previous and similar peak indicator is higher. The formation of a bearish divergence will allow traders to rely on a reversal of the pair in favor of the US dollar and a slight drop in the direction of the retracement level of 100.0% (1.1177). The release quotes from the level of 76.4% will similarly work in favor of the beginning of fall.

The Fibo grid is built according to the extremes of March 7, 2019, and March 20, 2019.

Daily

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As seen on the 24-hour chart, the pair reversed in favor of the European currency and began the process of returning to the retracement level of 127.2% (1.1285). The rebound of quotations from the Fibo level of 127.2% will allow expecting a reversal in favor of the American currency and a resumption of decline in the direction of the retracement level of 161.8% (1.0941). Closing the pair above the Fibo level of 127.2% will increase the likelihood of further growth in the direction of the next retracement level of 100.0% (1.1553).

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 1.1281 if the pair closes above the level of 76.4%. The stop loss order should be placed below the level of 1.1241.

Sell deals on EUR/USD pair can be opened with the target at 1.1177 if the pair rebounds from the retracement level of 76.4%. The stop loss order should be placed above the level of 1.1241, especially in conjunction with the bearish divergence.

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