4h
The currency pair EUR / USD closed below the correction level of 38.2% - 1.1446. As a result, on January 16, the fall in quotations can be continued in the direction of the next correction level of 23.6% - 1.1358. Rebounding the pair from the Fibo level of 23.6% will allow traders to expect a reversal in favor of the euro currency and some growth towards the level of 38.2%. The bullish divergence at the MACD indicator is also brewing, its formation will allow us to count on the beginning of the pair's growth.
The Fibo grid is built on extremes from September 24, 2018, and November 12, 2018.
Daily
On the 24-hour chart, after rebounding from the Fibo level of 100.0% - 1.1553, the fall in quotations continues in the direction of the correctional level of 127.2% - 1.1285. Maturing divergence in the current chart is not observed in any indicator. Rebounding the pair from the Fibo level of 127.2% will make it possible to expect a turn in favor of the EU currency and some growth in the direction of the correction level of 100.0% - 1.1553. Closing below the level of 127.2% will increase the likelihood of further decline.
The Fibo grid is built on extremums from November 7, 2017, and February 16, 2018.
Recommendations to traders:
You can make purchases of the EUR / USD currency pair with a target of 1.1446 and a Stop Loss order below the Fibo level of 23.6% if the pair bounces off the level of 1.1358 or a bullish divergence is formed.
New sales of the EUR / USD currency pair will be possible with the goal of 1.1269 with a Stop Loss order above the Fibo level of 23.6% if the pair consolidates below the level of 1.1358.
The material has been provided by InstaForex Company - www.instaforex.com