4h
The EUR / USD pair on the 4-hour chart after the formation of the bullish divergence at the MACD indicator made a reversal in favor of the euro and began the process of growth in the direction of the correction level of 23.6% - 1.1358. On February 18, a bearish divergence near the CCI indicator is brewing. The education will allow traders to expect a reversal in favor of the US dollar and the resumption of a fall in the direction of the correctional level of 0.0% - 1.1218. Hanging quotes from the Fibo level of 23.6% will similarly work in favor of the beginning of the fall of the pair.
The Fibo grid was built on extremums from September 24, 2018, and November 12, 2018.
Daily
On the 24-hour chart, the pair reverted to the correction level of 127.2% - 1.1285. Fixing the pair under this level will work in favor of the US dollar and a further fall in the direction of the next Fibo level of 161.8% - 1.0941. Regular quotes from this level will allow us to count on a turn in favor of the EU currency and the beginning of growth in the direction of the correction level of 100.0% - 1.1553.
The Fibo grid is built on extremums from November 7, 2017, and February 16, 2018.
Recommendations to traders:
Purchases of the EUR / USD pair can be made now with the goal of 1.1358, as the pair completed the closure above the level of 1.1269 (with the formation of bullish divergence), and the Stop Loss order below the level of 1.1269, and keep open purchases until the formation of the bearish divergence.
Sales of the EUR / USD pair can be carried out with the target of 1.1219 if the pair perform a rebound from the Fibo level of 23.6% or in case of a bearish divergence, and a Stop Loss order above the level of 1.1358.
The material has been provided by InstaForex Company - www.instaforex.com