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Analysis of EUR / USD Divergences on July 25. It will be difficult for the dollar to continue its growth.

4h

analytics5b58183e6cfd6.png

The currency pair EUR / USD on the 4-hour chart reversed in favor of the US dollar and falling to the correction level of 50.0% - 1.1680. The retreat of the pair from the Fibo level of 50.0% will allow traders to expect a turn in favor of the EU currency and some growth in the direction of the corrective level of 61.8% - 1.1721. On July 25, there are no signs of divergence in any indicator. Fixing the quotes below the Fibo level of 50.0% will work in favor of continuing the fall towards the next correction level of 38.2% - 1.1639.

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

Daily

analytics5b581846a11b4.png

On the 24-hour chart, the bullish divergence of the CCI indicator still allows us to count on the pair's growth towards the correctional level of 76.4% - 1.1789. The pair's retracement from the Fibo level of 76.4% will allow traders to expect a reversal in favor of the US currency and a slight drop towards the correction level of 100.0% - 1.1553. The consolidation of the pair's rate above the Fibo level of 76.4% will increase the likelihood of further growth in the direction of the next correction level of 61.8% - 1.1938.

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

Recommendations for traders:

Purchases of the EUR / USD pair on July 25 will be open with a target of 1,1721 and a Stop Loss level under the correction level of 50.0% if the Fibo 1.1680 retreats.

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