Analysis of EUR/USD divergences for May 15. A bullish divergence can help the euro recover

4h

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As seen on the 4-hour chart, the EUR/USD pair continues the process of falling, after the formation of a bearish divergence at the CCI indicator, in the direction of the retracement level 100.0% (1.1177). However, on May 15, a new bullish divergence is emerging at the CCI indicator, which allows traders to expect the pair to turn in favor of the EU currency and return to the retracement level of 76.4% (1.1241). The end of the pair quotes from the Fibo level of 100.0% will similarly work in favor of the beginning of growth.

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 picture does not change. The pair is still trading below the retracement level of 127.2% (1.1285) and retains a high chance of resuming a fall in the direction of the retracement level of 161.8% (1.0941). Fixing the pair above the Fibo level of 127.2% will work in favor of the euro currency and will allow expecting some growth in the direction of the retracement level of 100.0% (1.1553). There are no emerging divergences on the current chart in any indicator.

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 rebounds from the level of 100.0%. The stop loss order should be placed below the level of 1.1177, especially in conjunction with bullish divergence.

Sell deals on EUR/USD pair can be opened with the target at 1.1177, with a stop loss order above the level of 1.1241, as a bearish divergence was formed, and keep them open until the formation of a bullish divergence.

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