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Analysis of EUR / USD Divergences as of July 30. A small pullback for the European currency

4h

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The EUR / USD pair on the 4-hour chart reversed in favor of the euro and fixed over the correction level of 38.2% to 1.1639. As a result, on July 30, the growth progress can be continued in the direction of the next correction level of 50.0% at 1.1680. The cut-off of quotes from the Fibo level of 50.0% will allow traders to count on a reversal in favor of the US dollar and a slight drop towards the correction level of 38.2%.Fixation of the rate under the Fibo level of 38.2% can be similarly interpreted as a turn in favor of the US currency and expect a fall in the direction of the corrective level of 23.6% at 1.1590.

The Fibo grid was established on the boundaries of June 14, 2018 and June 21, 2018.

Daily

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On the 24-hour chart, the bullish divergence of the CCI indicator still allows the expected growth of quotations to the correctional level of 76.4% at 1.1789. n general, the pair tightly stuck between correction levels of 76.4% and 100.0%. The rebound of quotes from the Fibo level of 76.4% will allow traders to count on a reversal in favor of the US currency and a return to the correction level of 100.0% at 1.1553. Fixation of the pair below the Fibo level of 100.0% will work in favor of further falling quotations in the direction of the next correction level of 127.2% - 1.1285.

The Fibo grid was established on the boundaries of November 7, 2017 and February 16, 2018.

Recommendations for traders:

Purchases of the EUR / USD pair can be supported with the target of 1.1680 and the Stop Loss level under the correction level of 38.2%, as there was a close above the Fibo level of 1.1639.

Sales of the EUR / USD pair will be possible with the target of 1.1590, if the close is below the Fibo level of 38.2% and the Stop Loss order above the correction level of 1.1639.

The material has been provided by InstaForex Company - www.instaforex.com