4h
As seen on the 4-hour chart, the EUR/USD pair continues the process of growth in the direction of the retracement level of 76.4% (1.1241). On May 1, a bearish divergence is brewing at the MACD indicator. The last peak of quotations is below the previous and similar peak indicator is higher. The formation of a bearish divergence will allow traders to rely on a reversal of the pair in favor of the US dollar and a slight drop in the direction of the retracement level of 100.0% (1.1177). The release quotes from the level of 76.4% will similarly work in favor of the beginning of fall.
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 reversed in favor of the European currency and began the process of returning to the retracement level of 127.2% (1.1285). The rebound of quotations from the Fibo level of 127.2% will allow expecting a reversal in favor of the American currency and a resumption of decline in the direction of the retracement level of 161.8% (1.0941). Closing the pair above the Fibo level of 127.2% will increase the likelihood of further growth in the direction of the next 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 for EUR/USD and trading recommendations:
Buy deals on EUR/USD pair can be opened with the target at 1.1281 if the pair closes above the level of 76.4%. The stop loss order should be placed below the level of 1.1241.
Sell deals on EUR/USD pair can be opened with the target at 1.1177 if the pair rebounds from the retracement level of 76.4%. The stop loss order should be placed above the level of 1.1241, especially in conjunction with the bearish divergence.
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