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Analysis of the divergence of EUR / USD on October 11. The growth of the euro continues but may be limited to the level of

4h

analytics5bbeef71916a4.png

After the formation of a bullish divergence at the CCI indicator, the EUR / USD currency pair has completed growth to the correctional level of 50.0% - 1.1558. Rebounding quotes from the Fibo level of 50.0% will allow traders to count on a reversal in favor of the American currency and a slight drop in the direction of the 61.8% correction level of 1.1497. The ripening divergences on October 11th are not observed in any indicator. Fixing the pair above the Fibo level of 50.0% will increase the chances for further growth in the direction of the next correction level of 38.2% - 1.1620.

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

Daily

analytics5bbeef7aadc7a.png

On the 24-hour chart, the pair quotes returned to the correction level of 100.0% - 1.1553. Rebounding the pair from this level will allow us to expect a reversal in favor of the US dollar and a resumption of decline in the direction of the correctional level of 127.2% - 1.1285. Fixing quotes above Fibo 100.0% will work in favor of continuing growth in the direction of the next correction level of 76.4% - 1.1789. There are still no divergences.

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

Recommendations to traders:

New purchases of the EUR / USD currency pair will be possible with the goal of 1.1620 with a Stop Loss order below the Fibo level of 50.0% if the pair closes above the 1.1558 correction level.

Sales of the EUR / USD currency pair can be carried out with the target of 1.1497 with a Stop Loss order above the Fibo level of 50.0% if the pair bounces off the 1.1558 level.

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