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Analysis of the divergence of EUR / USD for October 18. Dollar strengthening continues

4h

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The bearish divergence of the MACD indicator allowed the pair to eventually fall to the correction level of 61.8% - 1.1497. Reversing the quotations from the Fibo level of 61.8% will allow traders to count on a reversal in favor of the European currency and some growth in the direction of the correction level of 50.0% - 1.1558. There is no one indicator of the emerging divergences today. Fixing the pair below the Fibo level of 61.8% will increase the chances for a further fall in the direction of the next correction level of 76.4% - 1.1424.

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, the pair reversed in favor of the US currency and began the process of falling in the direction of the correctional level of 127.2% - 1.1285. Over the current chart, no indicator has maturing divergences. Fixing the pair above the Fibo level of 100.0% can be interpreted as a reversal in favor of the EU currency and the resumption of growth in the direction of the correction level of 76.4% - 1.1789 is expected.

The Fibo grid 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 1.1558 and a Stop Loss order under the Fibo level of 61.8% if the pair bounces off of the 1.1497 correction level.

Sales of the EUR / USD currency pair can be carried out with the target of 1.1424 with a Stop Loss order above the Fibo level of 61.8% if the pair closes below the correction level of 1.1497.

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