4h
The double bullish divergence of the MACD and CCI indicators allowed the pair to make a U-turn in favor of the European currency and consolidation above the correction level of 61.8% - 1.1497. As a result, the growth process can be continued on October 22 in the direction of the correctional level of 50.0% - 1.1558. New emerging divergences are not observed. Fixing the rate of the pair below the Fibo level of 61.8% will work in favor of the US dollar and resuming the fall in the direction of the correction level of 76.4% - 1.1424.
The Fibo grid is built on extremes from August 15, 2018, and September 24, 2018.
Daily
On the 24-hour chart, the pair began the process of returning to the correction level of 100.0% - 1.1553. Rebounding quotes from the Fibo level of 100.0% will allow traders to count on a reversal in favor of the American dollar and a resumption of decline in the direction of the correction level of 127.2% - 1.1285. Fixing the pair above the Fibo level of 100.0% will increase the chances for further growth in the direction of the next correctional level of 76.4% - 1.1789.
The Fibo grid is built on extremums from November 7, 2017, and February 16, 2018.
Recommendations to traders:
Purchases of the EUR / USD currency pair can be made now with a target of 1.1558 and a Stop Loss order under the Fibo level of 61.8%, since the pair completed closing above the correction level of 1.1497.
Sales of the EUR / USD currency pair can be opened with the target of 1.1424 with a Stop Loss order above the Fibo level of 61.8% if the pair closes below the correction level of 1.1497.
The material has been provided by InstaForex Company - www.instaforex.com