4h
As seen on the 4-hour chart, the EUR/USD pair rebounded from the retracement level of 100.0% (1.1177) with a reversal in favor of the European currency. Thus, on May 8, the growth process of quotations can be resumed in the direction of the retracement level of 76.4% (1.1241). Today, none of the indicators has any emerging divergences. The closing of the pair under the Fibo level of 100.0% can be interpreted as a reversal in favor of the US currency and expect a slight drop in the direction of the retracement level of 127.2% (1.1102).
The Fibo grid is built according to the extremes of March 7, 2019, and March 20, 2019.
Daily
As seen on the 24-hour chart, the pair is below the retracement level of 127.2% (1.1285). Thus, the fall of quotations in the direction of the Fibo level of 161.8% (1.0941) may resume at any time. There are also no emerging divergences on the current chart. The consolidation of quotations above the Fibo level of 127.2% will work in favor of the EU currency and the resumption of growth in the direction of the retracement level of 100.0% (1.1553).
The Fibo grid is built according to the extremes of November 7, 2017, and February 16, 2018.
Forecast for EUR/USD and trading recommendations:
Buy deals on EUR/USD pair can be opened with the target at 1.1241 since the pair has completed the rebound from the level of 100.0%. The stop loss order should be placed below the level of 1.1177.
Sell deals on EUR/USD pair can be opened with the target at 1.1102 if the pair closes below the retracement level of 100.0%. The stop loss order should be placed above the level of 1.1177.
The material has been provided by InstaForex Company - www.instaforex.com