4h
The currency pair EUR / USD on the 4-hour chart continues the growth process towards the corrective level of 127.2% - 1.1431 after fixing over the Fibo level 161.8% - 1.1333. On August 17, the bearish divergence of the CCI indicator is brewing. Its formation will allow traders to count on a u-turn in favor of the US currency and a slight drop towards the correction level of 161.8%. The pair's retracement from the Fibo level of 127.2% will similarly work in favor of the beginning of the fall of quotations.
The Fibo grid is built on extremes from June 21, 2018 and July 9, 2018.
Daily
On the 24-hour chart, the process of falling quotations can be continued in the direction of the correction level of 127.2% - 1.1285. The pair's retreat from the Fibo level of 127.2% will allow to expect a turn in favor of the EU currency and some growth in the direction of the correction level of 100.0% - 1.1553. Today, there is no visible divergence in any indicator. Fixing the quotes below the Fibo level of 127.2% will increase the chances of the pair to further fall in the direction of the next correction level of 161.8% - 1.1285.
The Fibo grid is built on extremes from November 7, 2017, and February 16, 2018.
Recommendations for traders:
Purchases of the EUR / USD pair can now be carried out with a target of 1.1431 with a stop loss order under the Fibo level of 161.8%, since the pair completed the closing above the correction level of 1.3333 with the formation of a bullish divergence. You can keep buying until the formation of a bearish divergence.
New sales of the EUR / USD pair can be opened with targets of 1,1333 and 1,1227 if the pair retires from the Fibo level of 127.2%, with a Stop Loss order above 1.1431 or if a bearish divergence is formed.
The material has been provided by InstaForex Company - www.instaforex.com