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Analysis of EUR / USD Divergences for December 28th. The euro is growing, there are no obstacles

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The EUR / USD currency pair, after rebounding from the correction level of 23.6% - 1.1358, performed a U-turn in favor of the EU currency and an increase to the Fibo level of 38.2% - 1.1446 with a consolidation above it. As a result, on December 28, the growth process can be continued in the direction of the next correction level of 50.0% - 1.1515. There are no emerging divergences today. Fixing quotations under the Fibo level of 38.2% can be interpreted as a reversal in favor of the American currency and it is expected to fall in the direction of the correction level of 23.6% - 1.1358.

The Fibo grid is built on extremes from September 24, 2018, and November 12, 2018.

Daily

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On the 24-hour chart, the currency pair attempted to return to the correction level of 127.2% - 1.1285 but failed. As a result, the growth process was resumed in the direction of the correction level of 100.0% - 1.1553. There is no single indicator of ripening divergences on the current chart. Rebounding the pair from the Fibo level of 100.0% will allow traders to expect a reversal in favor of the US dollar and a slight drop in the direction of the correction level of 127.2% - 1.1285.

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

Recommendations to traders:

Purchases of the EUR / USD currency pair can be made now with a target of 1.1515 and a Stop Loss order below the Fibo level of 38.2% since the pair completed the closure above the level of 1.1446.

Sales of the EUR / USD currency pair can be made with the target of 1.1358 with a Stop Loss order above the Fibo level of 38.2% if the pair closes below the correction level of 1.1446 (hourly chart).

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