4h
As seen on the 4-hour chart, the EUR/USD pair performed a reversed in favor of the US dollar after the formation of a bearish divergence at the CCI indicator. As a result, on May 14, the process of falling quotations can be continued in the direction of the retracement level of 100.0% (1.1177). Closing of the pair above the Fibo level of 76.4% (1.1241) can again be interpreted as a reversal in favor of the euro and expect a resumption of growth in the direction of the retracement level of 61.8% (1.1281), especially in conjunction with the last peak of divergence.
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 picture remains the opposite. The pair is trading below the retracement level of 127.2% (1.1285) that keeps the probability of a resumption of falling prices towards the Fibonacci level of 161.8% (1.0941). Fixing the pair above the retracement level of 127.2% will work in favor of the European currency and will allow counting on some growth in the direction of the retracement level of 100.0% (1.1553). There are no emerging divergences on the current chart today.
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, with a stop loss order above the level of 1.1241, since a bearish divergence was formed.
