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Analysis of the divergence of EUR / USD for March 5. Two bearish divergences continue to push the pair down

4h

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The EUR / USD pair on the 4-hour chart consolidated below the correction level of 23.6% - 1.1358. As a result, the process of falling quotations resumed in the direction of the level of 1.1269. Maturing divergences on March 5 are not observed in any indicator on the current chart. Reversing the pair's quotes from the level of 1.1269 will allow traders to count on a reversal in favor of the European currency and a return to the correction level of 23.6%.

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, after the formation of a bearish divergence, the pair continues to fall slowly in the direction of the correctional level of 127.2% - 1.1285. Closing the rate below this level will increase the likelihood of a further fall in the direction of the next correction level of 161.8% - 1.0941. The end of the quotations from the Fibo level of 127.2% will work in favor of the EU currency and the start of growth in the direction of the correction level 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 with the target of 1.1446 if the pair closes above the level of 1.1358 and a Stop Loss order below the level of 23.6%.

Sales of the EUR / USD pair can be carried out now with a target of 1.1269, and with a Stop Loss order above the level of 1.1358, since the pair completed closing below the Fibo level of 23.6%.

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