4h
A new bearish divergence at the CCI indicator allowed the EUR / USD currency pair to make a U-turn in favor of the US currency and consolidation below the correction level of 61.8% - 1.1497. As a result, on October 23, the process of falling can be continued in the direction of the next Fibo level of 76.4% - 1.1424. Reversing the quotes from the correction level of 76.4% will make it possible to expect a turn in favor of the EU currency and some growth towards the 61.8% level. Fixing the pair below the Fibo level of 76.4% will increase the chances for a further fall in the direction of the next correction level of 100.0% - 1.1303.
The Fibo grid is built on extremes from August 15, 2018, and September 24, 2018.
Daily
On the 24-hour chart, the pair rebounded from the correctional level of 100.0% - 1.1553 and a turn in favor of the US dollar. Thus, today, the fall in quotations can be continued in the direction of the next level of correction 127.2% - 1.1285. There are no maturing divergences on the current chart. Fixing the pair above the Fibo level of 100.0% can be interpreted as a reversal in favor of the European currency and we can expect continued growth in the direction of the correction level of 76.4% - 1.1789.
The Fibo grid is built on extremums from November 7, 2017, and February 16, 2018.
Recommendations to traders:
Purchases of the EUR / USD currency pair can be made now with a target of 1.1497 and a Stop Loss order under the Fibo level of 76.4% if the pair bounces the correction level of 1.1424.
Sales of the EUR / USD currency pair can be held with the target of 1.1424 with a Stop Loss order above the Fibo level of 61.8%, as the pair completed closing below the correction level of 1.1497 and with the target of 1.1303 if the closing occurs below level 76.4%.
The material has been provided by InstaForex Company -
www.instaforex.com