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Analysis of the divergence of EUR / USD for November 21. Bearish divergence worked against the euro

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The EUR / USD currency pair reversed in favor of the US currency after the formation of a bearish divergence at the MACD indicator and consolidation below the correction level of 76.4% - 1.1423. As a result, on November 21, the fall in quotations can be continued in the direction of the next correction level of 100.0% - 1.1303. Rebounding the pair from the Fibo level of 100.0% will make it possible to count on a turn in favor of the euro currency and a return to the level of 76.4%. Closing below the Fibo level of 100.0% will increase the likelihood of a further fall in the direction of the next correction level of 127.2% - 1.1162.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 EUR / USD currency pair also reversed in favor of the US dollar after the formation of a bearish divergence at the CCI indicator and began to fall in the direction of the correction level of 127.2% - 1.1285. Rebounding the quotations from the Fibo level of 127.2% will make it possible to expect a reversal in favor of the EU currency and the resumption of growth in the direction of the correction level of 100.0% - 1.1553. Fixing the rate under the Fibo level of 127.2% will increase the chances of continuing falling towards the 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 1.1423 and a Stop Loss order under the Fibo level of 100.0% if the pair bounces off the level of 1.1303.You can sell the EUR / USD currency pair 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 1.1423 to form a bearish divergence.

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