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Analysis of the divergence of EUR / USD on October 25 New fall of European currency

4h

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On a 4-hour chart, quotes of the EUR / USD currency pair were consolidated below the correction level of 76.4% - 1.1424. Thus, the process of falling off the pair can be continued on October 25 in the direction of the next correctional level of 100.0% - 1.1303. The ripening divergences today are not observed in any indicator. Fixing the pair above the Fibo level of 76.4% will allow traders to count on a turn in favor of the euro currency and some growth in the direction of the correction level of 61.8% - 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, the pair rebounded from the correctional level of 100.0% - 1.1553. As a result, the drop in quotations continues on the hourly chart in the direction of the next correctional level of 127.2% - 1.1285. Reversing quotations from the Fibo level of 127.2% will allow traders to expect a reversal in favor of the European currency and some growth in the direction of the correction level of 100.0%. Fixing the pair below the Fibo level of 127.2% will increase the probability of a further fall in the direction of the next correctional level of 161.8% - 1.0941.

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

Recommendations to traders:

You can make purchases of the EUR / USD currency pair with a target of 1.1497 and a Stop Loss order below the Fibo level of 76.4% if the pair closes above the correctional level of 1.1424.

The EUR / USD currency pair can be sold now with a target of 1.1303 with a Stop Loss order above the Fibo level of 76.4%, as the pair closed below the correction level of 1.1424.

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