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Analysis of EUR/USD divergence on May 9. The euro keeps the chances of a small growth

4h

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As seen on the 4-hour chart, the EUR/USD pair rebounded from the retracement level of 100.0% (1.1177), which allows traders to expect some growth in the direction of the retracement level of 76.4% (1.1241). There are no emerging divergences today. The strengthening of the pair under the Fibo level of 100.0% can be interpreted as a reversal in favor of the US currency and expect a resumption of the fall in the direction of the retracement level of 127.2% (1.1102).

The Fibo grid is built according to the extremes of March 7, 2019, and March 20, 2019.

Daily

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As seen on the 24-hour chart, the picture is the opposite. Quotes of the pair completed the close below the Fibo level of 127.2% (1.1285) that allows expecting a continuation of the fall in the direction of the retracement level of 161.8% (1.0941). There are no emerging divergences today. The consolidation of quotations above the Fibo level of 127.2% will work in favor of the EU currency and will allow expecting some growth in the direction of the retracement level of 100.0% (1.1553).

The Fibo grid is built according to the extremes of November 7, 2017, and February 16, 2018.

Forecast and trading recommendations for EUR/USD:

Buy deals on EUR/USD pair can be opened with the target at 1.1241 since the pair has completed the rebound from the level of 100.0%. The stop loss order should be placed below the level of 1.1177.

Sell deals on EUR/USD pair can be opened with the target at 1.1102 if the pair closes below the retracement level of 100.0%. The stop loss order should be placed above the level of 1.1177.

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