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Analysis of the divergence of EUR / USD on October 10. The bullish divergence helps the euro once again

4h

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The formation of a new bullish divergence on the current chart allowed the EUR / USD currency pair to make a new reversal in favor of the European currency and consolidation above the correction level of 61.8% - 1.1497. As a result, on October 10, the growth process can be continued in the direction of the next correction level of 50.0% - 1.1558. Fixing the quotations of the pair below the Fibo level of 61.8% can be interpreted as a reversal in favor of the American currency and count on the resumption of the fall in the direction of the 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, after fixing the quotes under the correction level of 100.0%, the fall process can be continued in the direction of the next correction level of 127.2% - 1.1285. There are no maturing divergences on the current chart. Fixing the pair above the Fibo level of 100.0% - 1.1553 will work in favor of the EU currency and will allow to expect some growth in the direction of the correction level of 76.4% - 1.1789.

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 made now with the goal of 1.1558 with a Stop Loss order below the Fibo level of 61.8%, since the pair completed closing above the correction level of 1.1497.

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 1.1497 level.

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