4h
The EUR / USD pair cleared the correction level of 127.2% at 1.1431 and the turn was in favor of the US currency with a fall to the level of Fibo 161.8% at 1.1333. Exiting the prices from the correction level of 161.8% will allow the counting of the currency in the EU currency and some growth in the direction of the correction level of 127.2%. Maturing bullish divergence in the MACD indicator was on August 15, which also allows you to expect growth of the pair. The consolidation of the exchange rate under the Fibo level of 161.8% will increase the chances of further falling to the next correction level of 200.0% at 1.1227.
The Fibo grid was established on boundaries from June 21, 2018 and July 9, 2018.
Daily
On the 24-hour chart, the pair continues the decline in the direction of the correction level of 127.2% at 1.1285. Today, there is no visible divergence in any indicator. The retracement of the pair from the correction level of 127.2% will allow traders to expect a turn in favor of the Euro and some growth in the direction of the Fibo level of 100.0% at 1.1553. The closing of the pair's quotes under the correction level of 127.2% will work in favor of continuing the fall towards the next level of Fibo 161.8% at 1.0941.
The Fibo grid was established on boundaries from November 7, 2017 and February 16, 2018.
Recommendations for traders:
Purchases of the EUR / USD pair will be possible at 1.1431 with a Stop Loss order at 161.8%, if the pair retreats from the correction level of 1.1333, especially in conjunction with the bullish divergence.
New sales of the EUR / USD pair can be opened with the target of 1.1227 if the pair completes the closing under the Fibo level 161.8%, with the Stop Loss order above the level of 1.1333.
The material has been provided by InstaForex Company - www.instaforex.com