4h
As seen on the 4-hour chart, the EUR/USD pair continues the process of falling towards the retracement level of 127.2% (1.1102), and the bullish divergence has been canceled almost immediately after the formation. The rebound of quotations on April 26 from the Fibo level of 127.2% will allow traders to count on a reversal in favor of the European currency and some growth in the direction of the retracement level of 100.0% (1.1177). The closure of the pair below the Fibo level of 127.2% will increase the chances of further decline towards the next retracement level of 161.8% (1.1009).
The Fibo grid is built according to the extremes of March 7, 2019, and March 20, 2019.
Daily
As seen on the 24-hour chart, the pair has been consolidated under the retracement level of 127.2% (1.1285), and under the previous two lows. Thus, the chances of continuing to fall in the direction of the Fibo level of 161.8% (1.0941) have significantly increased. There are no emerging divergences on any chart. The rebound of the pair from the level of 161.8% will allow traders to expect a turn in favor of the EU currency and some growth towards the retracement level of 127.2%.
The Fibo grid is built according to the extremes of November 7, 2017, and February 16, 2018.
Forecast for EUR/USD and trading recommendations:
Buy deals on EUR/USD pair can be opened with the target at 1.1177 if the pair performed the rebound from the level to 127.2%. The stop loss order should be placed below the level of 1.1102.
Sell deals on EUR/USD pair can be opened with the target at 1.1009 if the pair performed consolidation under the retracement level of 127.2%. The stop loss order should be placed above the level of 1.1102.
The material has been provided by InstaForex Company - www.instaforex.com