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Analysis of the divergence of EUR / USD for January 29. The euro currency is preparing to roll back

4h

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The currency pair EUR / USD has completed growth to the correctional level of 38.2% - 1.1446. The rebound from this Fibo level 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 23.6% - 1.1358. Also, on January 29, the bearish divergence of the CCI indicator continues to mature. Its formation will increase the likelihood of rebounding quotes from the Fibo level of 38.2%. Closing the pair above 38.2% will work in favor of continuing growth in the direction of the correction level of 50.0% - 1.1517.

The Fibo grid was built on extremums from September 24, 2018, and November 12, 2018.

Daily

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On the 24-hour chart, the currency pair rebounded from the correction level of 127.2% - 1.1285 and after this continues the growth process in the direction of the correction level of 100.0% - 1.1553. There are no maturing divergences on the current chart. Rebounding quotes from the Fibo level of 100.0% will make it possible to expect a reversal in favor of the American currency and a slight fall towards the correction level of 127.2%. A fixation above the level of 100.0% will work in favor of continued growth.

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

Recommendations to traders:

New purchases of the currency pair EUR / USD will be possible with the goal of 1.1517, if the pair closes above the level of 38.2%, and a Stop Loss order under 1.1446.

Sales of the currency pair EUR / USD will be possible with the goal of 1.1358 with a Stop Loss order above the Fibo level of 38.2% if the pair bounces off the level of 1.1446, especially in conjunction with the bearish divergence.

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