4h
The EUR / USD currency pair reversed in favor of the euro, after the formation of the bullish divergence in the CCI indicator, and after the rebound from the correction level of 23.6% - 1.1358, continuing the growth process in the direction of the correctional level of 38.2% - 1.1446. Rebounding quotes from the Fibo level of 38.2% will allow traders to expect a reversal in favor of the US currency and a slight decline in the direction of the correction level of 23.6%. Fixing the pair above the Fibo level of 38.2% will increase the likelihood of continued growth in the direction of the next correction level of 50.0% - 1.1517.
The Fibo grid is built on extremes from September 24, 2018, and November 12, 2018.
Daily
On the 24-hour chart, the currency pair continues to trade along the correctional level of 127.2% - 1.1285, keeping the prospects for reaching the Fibo level of 100.0% - 1.1553. Overlapping divergences on January 7th are not observed in any indicator. The end of the quotes from the correction level of 100.0% will work in favor of the American dollar and some fall in the direction of the Fibo level of 127.2%. A close below the level of 127.2% will similarly allow counting on a 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 currency pair can be made now with a target of 1.1446 and a Stop Loss order below the Fibo level of 23.6% since the pair completed the closure above the level of 1.1358.
Sales of the EUR / USD currency pair can be carried out with the target of 1.1358 with a Stop Loss order above the Fibo level of 38.2% if the pair rebounds the correction level of 1.1446.
