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Analysis of EUR / USD Divergences on July 24. The US dollar began to grow again

4h

analytics5b56c2bd76272.png

The EUR / USD pair on the 4-hour chart reversed in favor of the US currency and secured a correction level of 61.8% to 1.1721, falling to the Fibo level of 50.0% to 1.1680. Quit on July 24 from the correction level of 50.0% will allow traders to count on a turn in favor of the euro and return to the level of Fibo 61.8% - 1.1721. Fixing the pair under the correction level of 50.0% will increase the chances of further decline towards the corrective level of 38.2% - 1.1639. Brewing divergences today is not observed in any indicator.

The Fibo grid is built on the extremes of June 14, 2018 and June 21, 2018.

Daily

analytics5b56c2c77f6bc.png

On the 24-hour chart, the bullish divergence of the CCI indicator allowed the pair to turn in favor of the euro and begin to rise in the direction of the correction level of 76.4% to 1.1789. Quit of quotations from the correctional level of 76.4% will allow to expect a turn in favor of the US dollar and a slight drop towards the Fibo level of 100.0% - 1.1553. Strengthening the rate above the correction level of 76.4% will increase the likelihood of continued growth of the pair in the direction of the next level Fibo 61.8% - 1.1938.

The Fibo grid is built on extremes from November 7, 2017 and February 16, 2018.

Recommendations for traders:

Purchases of EUR / USD on July 24 can be opened with a target of 1,1721 and a Stop Loss level under the correction level of 50.0% if there is a retreat from the Fibo level of 1.1680.

To sell the EUR / USD pair will be possible with the targets of 1,1639 and 1,1590, if the closing is done below the Fibo level of 50.0%, with a Stop Loss order above the correction level of 1.1680.

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