Analysis of EUR/USD divergences for May 2. Bearish divergence helped the dollar

4h

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As seen on the 4-hour chart, the EUR/USD pair performed a reversal in favor of the US dollar. The process of falling towards the retracement level of 100.0% (1.1177) began after the formation of a bearish divergence at the MACD indicator and a rebound from the Fibo level of 76.4% (1 1241). The retreat of quotations on May 2 from the retracement level of 100.0% will allow us to count on a reversal in favor of the EU currency and the resumption of growth in the direction of the Fibo level of 76.4%. Closing the pair below the level of 100.0% will increase the likelihood that the fall will continue in the direction of the next Fibo level of 127.2% (1.1102).

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 continues the process of returning to the retracement level of 127.2% (1.1285). The rebound of the pair from this level will allow us to count on a reversal in favor of the US currency and the resumption of the fall in the direction of the retracement level of 161.8% (1.0941). Closing the pair above the Fibo level of 127.2% will work in favor of further growth in the direction of the next retracement level of 100.0% (1.1553). None of the indicators have emerging divergences on the current chart.

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.

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