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Analysis of the divergence of EUR / USD for February 1. The euro started a new decline in the area of 1.1300

4h

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The currency pair EUR / USD rebounded from the correction level of 50.0% - 1.1517, a reversal in favor of the American currency and a close below the Fibo level of 38.2% - 1.1446. As a result, the process of falling quotations on February 1 can be continued in the direction of the next correction level of 23.6% - 1.1358. There is no indicator of the emerging divergences today. A close above the Fibo level of 38.2% will work in favor of the EU currency and return to the correction level of 50.0%.

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 continues to rise in quotations in the direction of the correction level of 100.0% - 1.1553. Rebounding the pair from this level will allow traders to expect a reversal in favor of the US dollar and on this chart, as well as a slight decline in the direction of the correctional level of 127.2% - 1.1285. Fixing the pair above the Fibo level of 100.0% will increase the likelihood of continued growth in the direction of the next correction level of 76.4% - 1.1789.

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

Recommendations to traders:

Purchases of the currency pair EUR / USD can be carried out with the target of 1.1517 if the pair closes above the level of 38.2%, and with a Stop Loss order under 1.1446.

Sales of the currency pair EUR / USD 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 the closure below the level of 1.1446.

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