Analysis of the divergence of EUR / USD on October 19. The pair is preparing to roll back

4h

The bearish divergence of the MACD indicator allowed the pair to close below the correction level of 61.8% - 1.1497. As a result, on October 19, the process of falling quotations continues in the direction of the correctional level of 76.4% - 1.1424. Also today, bullish divergence is brewing at the CCI indicator. Its education will allow traders to expect a turn in favor of the EU currency and some growth in the direction of the Fibo level of 61.8%. Rebounding the pair from the correction level of 76.4% will similarly work in favor of the beginning of growth.

The Fibo grid was built on extremes from August 15, 2018, and September 24, 2018.

Daily

On the 24-hour chart, the pair consolidated below the corrective level of 100.0% - 1.1553. Thus, the fall in quotations continues in the direction of the next correction level of 127.2% - 1.1285. There are no maturing divergences on the current chart. Rebound of the pair from the Fibo level of 127.2% will allow traders to expect a reversal in favor of the European currency and some growth towards 100.0%.

The Fibo grid is built on extremes from November 7, 2017, and February 16, 2018.

Recommendations to traders:

Purchases of the EUR / USD currency pair can be opened with the 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, especially in the aggregate in bullish divergence.

The EUR / USD currency pair can be sold now with the target of 1.1424 with a Stop Loss order above the Fibo level of 61.8%, since the pair closed below the correction level of 1.1497 and hold them until a bullish divergence is formed.