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Analysis of the divergence of EUR / USD for October 16. Perhaps a new fall for the currency pair

4h

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On Monday, the EUR / USD currency pair reversed without generating any signal in favor of the European currency and consolidated above the Fibo level of 50.0% - 1.1558. As a result, the growth process can be continued today in the direction of the next correction level of 38.2% - 1.1620. There is no indicator of the emerging divergences today. The closing of quotations below the Fibo level of 50.0% can be interpreted as a reversal in favor of the US dollar and we can expect a slight decline in the direction of the 61.8% correction level of 1.1497.

The Fibo grid is built on extremes from August 15, 2018, and September 24, 2018.

Daily

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On the 24-hour chart, after all, they completed the close above the correction level of 100.0% - 1.1553. Thus, the growth process can be continued in the coming days with the goal of a correctional level of 76.4% - 1.1789. Fixing the rate of the pair below the Fibo level of 100.0% will work in favor of the American currency and resuming the fall in the direction of the correction level of 127.2% - 1.1285. There is no maturing divergence in any indicator.

The Fib net is built on extremums from November 7, 2017, and February 16, 2018.

Recommendations to traders:

Purchases of the EUR / USD currency pair can be opened with the target of 1.1620 and a Stop Loss order under the Fibo level of 50.0% if the pair bounces the correction level of 1.1558.

The EUR / USD currency pair can be sold now with a target of 1.1497 with a Stop Loss order above the Fibo level of 50.0% if the pair closes below the correction level of 1.1558.

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