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Analysis of the divergence of EUR / USD for February 5. The pair shows the willingness to fall

4h

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The currency pair EUR / USD, after rebounding from the correctional level of 50.0% - 1.1517, performed consolidation below the Fibo level of 38.2% - 1.1446 and continues the process of falling in the direction of the level of 23.6% - 1.1358. Overlapping divergences on February 5th are not observed in any indicator. Fixing quotations of the pair above the Fibo level of 38.2% will work in favor of the Euro currency and the resumption of growth in the direction of the correction level of 50.0%.

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 pair retains chances for further growth in the direction of the correction level of 100.0% - 1.1553. Rebounding the rate of the pair from this level will allow traders to expect a reversal in favor of the American currency and a slight drop in the direction of the Fibo level of 127.2% - 1.1285. Fixing quotes above the correction level of 100.0% will increase the chances of continued growth in the direction of the correctional 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 correction 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