4h
According to the 4-hour chart, the EUR/USD pair had reversed in favor of the European currency and closed above the 61.8% Fibo level to 1.1603, after the bullish divergence of the CCI indicator. As a result, the growth process can be continued on August 27 towards the next correction level of 76.4% - 1.1675. Today, the bearish divergence of the MACD indicator is maturing. Its formation will allow us to consider reversal in favor of the US dollar and a slight decline towards the corrective level of 50.0% - 1.1546. The rebound of quotes from the 76.4% Fibo level will similarly work in favor of the US currency.
The Fibo grid is established on the extremes from July 9, 2018 and August 15, 2018.
Daily
On the 24-hour chart, the pair completed a new fixation above the correction level of 100.0% - 1.1553. Thus, the growth of quotations can be continued towards the correctional level of 76.4% - 1.1789. Brewing divergences today is not noticeable in any indicator. The consolidation of the pair's rate below the Fibo level of 100.0% can be interpreted as a reversal in favor of the US currency and expect a slight decline towards the correction level of 127.2% to 1.1285.
The Fibo grid is established on the extremes from November 7, 2017 and February 16, 2018.
Recommendations for traders:
Purchases of the EUR/USD pair can now be carried out with the target at 1.1675, and a stop loss order below the Fibo level of 61.8%, as the pair completed the closing above the correction level 1.1603, and hold them until a bearish divergence forms.
Selling the EUR/USD pair will be possible with the target at 1.1546, if the pair completes the closing at the Fibo level of 61.8% or a bearish divergence is formed with a Stop Loss order above the level of 1.1603.
* The presented market analysis is informative and does not constitute a guide to the transaction.
The material has been provided by InstaForex Company - www.instaforex.com