4h
The pair EUR / USD on the 4-hour chart has increased to a correction level of 50.0% - 1.1680. End of quotes from this level Fibo worked in favor of the US dollar and the pair began to fall in the direction of correction levels 61.8% - 1.1639 and 76.4% - 1.1589. Brewing divergences on July 2 are not observed in any indicator. The consolidation of the pair's rate above the Fibo level of 50.0% can be interpreted as a reversal in favor of the EU currency and expect to continue growing in the direction of the corrective level of 38.2% - 1.1721.
The Fibo grid is built on extremes from May 29, 2018, and June 14, 2018.
Daily
On the 24-hour chart, the quotes were released from the corrective level of 100.0% to 1.1553 and started the growth process in the direction of the Fibo level of 76.4% -1.1789. Today, the bearish divergence of the CCI indicator is maturing. Its formation will allow traders to count on the reversal of the pair in favor of the US dollar and a return to the correction level of 100.0%. Fixing the quotes below the Fibo level of 100.0% will increase the chances of the pair to further fall in the direction of the next correction level of 127.2% - 1.1285.
The Fibo grid is built on extremes from November 7, 2017, and February 16, 2018.
Recommendations for traders:
Buy EUR / USD will be possible with the targets of 1,1721 and 1,1771 with the level of Stop Loss under the correction level of 50.0% if there is a close above the level of 1.1680.
To sell the EUR / USD pair is now possible with the targets of 1,1639 and 1,1589, as there was a retreat from the correction level of 50.0%, with the Stop Loss order above the opening level.
The material has been provided by InstaForex Company - www.instaforex.com