On the 4-hour chart, the EUR / USD pair is the corrected retreat from the correction level of 61.8% to 1.1617 and a reversal in favor of the US currency. As a result, the pair made a drop to the correction level of 100.0% at 1,1508. At the time of writing, the fall in quotations continued below the Fibo level of 100.0% in the direction of the correction level of 127.2% at 1.1431. The retracement level of the pair from the Fibo level of 127.2% allows traders to expect a turn in the favor of the EU currency and a return to the correction level of 100.0%. The bullish divergence of the MACD indicator is maturing, which allows us to count on some growth of the pair. Fixing the quotes below the Fibo level of 127.2% will increase the chances of a further decline.
The Fibo grid was established on the boundaries of June 21, 2018 and July 9, 2018.
On the 24-hour chart, the quotes returned to the correction level of 100.0% at 1.1553, and a bit later, consolidated below it. As a result, the process of falling quotations can be continued in the direction of the next. Fibo level of 127.2% at 1.1285. Brewing divergences in the pair are not observed in any indicator. The consolidation of the price above the correction level of 100.0% can be interpreted as a turn in favor of the euro and expect some growth in the direction of the correctional level of 76.4% – 1.1789.
The Fibo grid was established on the boundaries of November 7, 2017 and February 16, 2018.
Recommendations for traders:
New purchases of the EUR / USD pair will be possible with the target of 1,1508 with a stop loss order under the Fibo level of 127.2% if the pair retires from the correction level of 1.1431, especially in conjunction with the bullish divergence.
Sales of the EUR / USD pair, can be held with the targets of 1.1431 and 1.1333, as the pair is completed the closing under the Fibo level of 100.0%, with the Stop Loss order above the level of 1.1508.
The material has been provided by InstaForex Company – www.instaforex.com