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Analysis of EUR / USD Divergences on September 18. Bullish divergence allowed the euro to grow

4h

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The EUR / USD currency pair on the 4-hour chart reversed in favor of the European currency, after the bullish divergence of the CCI indicator, and the fixation over the Fibo level of 76.4% to 1.1675. As a result, the growth process can be continued in the direction of the next correction level of 100.0% - 1.1791. On September 18, there are no new brewing divergences. The consolidation of quotations under the Fibo level of 76.4% can be interpreted as a reversal in favor of the US dollar and expect a slight drop towards the corrective level of 61.8% - 1.1605.

The Fibo grid is built on extremes from July 9, 2018, and August 15, 2018.

Daily

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On the 24-hour chart, after the rebound from the corrective level of 100.0% - 1.1553, the growth process continues in the direction of the correction level of 76.4% - 1.1789. Brewing divergences are not observed again today. The pair's retracement from the Fibo level of 76.4% will allow traders to expect a reversal in favor of the US dollar and a slight drop towards the correction level of 100.0%. Fixing a pair above the Fibo level of 100.0% will increase the chances of further growth.

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

Recommendations for traders:

Purchases of the EUR / USD currency pair can now be carried out with a target of 1.1791 with a stop loss order under the Fibo level of 76.4%, since the pair completed the closing above the correction level of 1.1675.

Sales of the EUR / USD currency pair will be possible for 1.1605 with a Stop Loss order above the Fibo level of 76.4% if the pair completes closing under the level of 1.1675.

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