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Analysis of the divergence of EUR / USD on November 26. Divergence, hang up: the dollar rises again

4h

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The EUR / USD pair completed the second rebound from the correctional level of 76.4% - 1.1423 and a turn in favor of the American currency. As a result, on November 26, the process of falling quotations continues in the direction of the correction level 100.0% - 1.1303. Moreover, rebounding the pair from the Fibo level of 100.0% will allow traders to expect a turn in favor of the EU currency which will allow some growth in the direction of the correction level of 76.4%. Also, fixing the pair below the Fibo level of 100.0% will increase the chances for a further fall in the direction of the next correction level 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 pair continues to fall in the direction of the correctional level of 127.2% - 1.1285 after the formation of a bearish divergence in the CCI indicator. Rebounding the pair's course from the Fibo level of 127.2% will make it possible to count on a turn in favor of the euro currency and some growth in the direction of the correction level 100.0% - 1.1533. More so, fixing the rate of the pair below the Fibo level of 127.2% will increase the chances for a further fall in the direction of the next level of correction 161.8% - 1.0941.

The Fib net is built on extremums from November 7, 2017 and February 16, 2018.

Recommendations to traders:

You can make purchases of the EUR / USD 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.

New sales of the EUR / USD pair will be possible with the target of 1.1162 with a Stop Loss order above the Fibo level of 100.0% if the pair closes below the 1.1303 level.

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