4h
The EUR / USD currency pair reversed yesterday in favor of the US dollar and consolidation immediately below two Fibo levels of 38.2% - 1.1446, and then under 23.6% - 1.1358. As a result, on January 3, the process of falling off the pair can be continued in the direction of the level of 1.1269, which is low over the last month and a half. The closing of quotations above the Fibo level of 23.6% can be interpreted as a turn in favor of the European currency and one can expect some growth in the direction of the correction level of 38.2%.The Fibo grid is built on extremes from September 24, 2018, and November 12, 2018.
Daily
On the 24-hour chart, the currency pair reversed in favor of the American currency and began the process of returning to the correction level of 127.2% - 1.1285. Rebounding quotes from the Fibo level of 127.2% will allow traders 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. There are no emerging divergences today. Fixing the pair under the Fibo level will increase the likelihood of a further fall in the direction of the next correction level of 161.8% - 1.0941.
The Fibo grid is built on extremums 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 1.1446 and a Stop Loss order below the Fibo level of 23.6% if the pair closes above the level of 1.1358.
The EUR / USD currency pair can be sold now with the target of 1.1269 with a Stop Loss order above the Fibo level of 23.6% since the pair closed below the correction level of 1.1358.
The material has been provided by InstaForex Company - www.instaforex.com