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Analysis of the divergence of EUR / USD for November 20. Euro is preparing for a new fall

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The EUR / USD currency pair consolidated above the correction level of 76.4% - 1.1423. As a result, the growth process continues on November 20 in the direction of the next Fibo level of 61.8% - 1.1497. Today, the bearish divergence is brewing at the MACD indicator. The education will allow traders to expect a reversal in favor of the US currency and a slight drop in the pair. Rebounding quotes from the Fibo level of 61.8% will similarly work in favor of the beginning of a fall.The Fibo grid was built on extremes from August 15, 2018, and September 24, 2018.

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On the 24-hour chart, the EUR / USD currency pair closed above the correctional level of 127.2% - 1.1285. However, on this chart, a bearish divergence is brewing, in the CCI indicator. Thus, we have two emerging bearish divergences, which allow us to count on a reversal in favor of the US dollar and a slight decline in the direction of the correction level of 127.2%. The end of the pair's rate from the Fibo level of 100.0% will similarly work in favor of the American dollar.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% since the pair completed the closure above the level of 1.1423 and hold them until a bearish divergence is formed.Selling of the EUR / USD currency pair will be possible with the goal of 1.1303 with a Stop Loss order above the Fibo level of 76.4% if the pair closes below the correction level of 1.1423, especially in conjunction with the bearish divergence.

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