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Analysis of EUR / USD Divergences for July 6. The dollar continues to lose ground

4H

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The EUR / USD pair cleared the Fibo level of 61.8% at 1.1639 on the 4-hour chart and the growth to the correctional level of 38.2% at 1.1721. Exit of quotations from the level of correction where 38.2% already worked in favor of the US currency and the pair is successfully returned to the 50.0% level of Fibo at 1.1680. Quit of quotations from the correction level of 50.0% on July 6 will allow us to expect a turnaround in favor of the Fibo level of 38.2%. The consolidation of the euro, major pair rate, under the correction level of 50.0% will increase the chances of further falling in the direction of the next level of 61.8% Fibo at 1.1639.

The Fibo grid is built on extremes from May 29, 2018 and June 14, 2018.

Daily

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On the 24-hour chart, the growth of the EUR / USD pair quotation continues in the direction of the correction level of 76.4% at 1.1789. The maturing bearish divergence of the CCI. Her education will allow you to count on a reversal in favor of the US dollar and the return of the pair to the Fibo level of 100.0% at 1.1553. Quit of quotations from the correction level of 76.4% will similarly work in favor of the US currency. Fixing the pair above the Fibo level of 76.4% will increase the likelihood of continued growth to the next correction level of 61.8% at 1.1938.

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

Recommendations for traders:

It is possible to buy the EUR / USD pair with a target of 1.1721 and if there is a retreat from the correction level of 1.1680, a Stop Loss level should be placed below the 50.0% Fibo level.

It is possible to sell the EUR / USD pair with the target of 1.1639 and if there is a close at the correcting level of 50.0%, a Stop Loss order should be above the level of 1.1680.

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