4h
The currency pair EUR / USD, after the formation of a third consecutive bullish divergence, nevertheless performed a reversal in favor of the euro currency and started the growth process in the direction of the correctional level of 38.2% - 1.1446. However, on January 24, there was already a bearish divergence in the CCI indicator, which allows traders to expect a reversal in favor of the US dollar and a resumption of the fall. Closing the pair below the Fibo level of 23.6% will work in favor of continuing to fall towards the level of 1.1269.
The Fibo grid is built on extremes from September 24, 2018, and November 12, 2018.
Daily
On the 24-hour chart, the process of falling quotations continues in the direction of the Fibo level of 127.2% - 1.1285. Rebounding the pair from this level will allow us to expect a reversal in favor of the European currency and some growth in the direction of the correction level of 100.0% - 1.1553. Maturing divergences in the current chart are not observed in any indicator. Closing quotes below the Fibo level of 127.2% will increase the chances for a further fall in the direction of the next correction level of 161.8% - 1.0941.
The Fibo grid is built on extremums from November 7, 2017, and February 16, 2018.
Recommendations to traders:
New purchases of the currency pair EUR / USD can be made with a target of 1.1446 and a Stop Loss order under the level of 23.6% if the pair completes the last peak of the bearish divergence.
Sales of the currency pair EUR / USD can be made with the target of 1.1269 with a Stop Loss order above the Fibo level of 23.6% if the pair closes below the level of 1.1358.
The material has been provided by InstaForex Company - www.instaforex.com