The EUR / USD pair on the 4-hour chart completed closing above the correction level of 76.4% – 1.1299. The bearish divergence is canceled, and the growth process can be continued on March 14 in the direction of the correctional level of 61.8% – 1.1351. Rebounding the pair’s quotes from the Fibo level of 61.8% will allow traders to expect a reversal in favor of the American currency and a slight drop in the direction of the correction level of 76.4%. Closing the pair below 76.4% will similarly work in favor of the US dollar and the beginning of the fall.
The Fibo grid was built on extremes from November 12, 2018, and January 10, 2019.
On the 24-hour chart, the pair reversed in favor of the European currency and closed above the correction level of 127.2% – 1.1285. As a result, the growth process can be continued in the direction of the next Fibo level of 100.0% – 1.1553. The ripening divergences today are not observed in any indicator. Fixing quotations below the Fibo level of 127.2% can be interpreted as a reversal in favor of the US currency and expect a resumption of the fall in the direction of the correction level of 161.8% – 1.0941.
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 1.1351, as the pair completed closing above the level of 1.1299, and a Stop Loss order under the correction level of 76.4%.
Sales of the EUR / USD pair can be made with the target of 1.1216 if the pair closes below the level of 1.1299, and a Stop Loss order above the Fibo level of 76.4%.
The material has been provided by InstaForex Company – www.instaforex.com