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Analysis of the EUR / USD divergence for December 31. New fall to 1.14?

4h

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The EUR / USD currency pair reversed in favor of the US currency near the previous peak and consolidated below the correction level of 38.2% - 1.1446. As a result, on December 31, the fall in quotations can be continued in the direction of the correctional level of 23.6% - 1.1358. There is no indicator of the emerging divergences today. Fixing the pair above the Fibo level will work in favor of the EU currency and the resumption of growth in the direction of the correction level of 50.0% - 1.1515.

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 pair resumed the growth process in the direction of the corrective level of 100.0% - 1.1553. None of the indicators have maturing divergences on the current chart. The turn in favor of the US dollar on the 4-hour chart makes it possible to expect a return of quotations to the Fibot level of 127.2% - 1.1285 and at the 24-hour one. Reversal of quotes from the correction level of 100.0% will similarly work in favor of the beginning of the fall of the pair.

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 1.1515 and a Stop Loss order below the Fibo level of 38.2% if the pair closes above 1.1446.

Sales of the EUR / USD currency pair can be carried out now with the goal of 1.1358 with a Stop Loss order above the Fibo level of 38.2%, since the pair completed closing below the correction level of 1.1446.

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