Analysis of EUR / USD Divergences as of July 31. Euro-currency grows before the Fed meeting
The EUR / USD pair on the 4-hour chart fulfilled growth to the correctional level of 61.8% at 1.1721. Exit from the Fibo level of 61.8% on July 31 will allow traders to count on a reversal in favor of the US dollar and a slight drop towards the correction levels of 50.0% – 1.1680 and 38.2% – 1.1639. Brewing divergences today is not observed in any indicator. Fixation of the pair above the Fibo level of 61.8% will increase the chances of further growth in the direction of the next correction level of 76.4% at 1.1771.
The Fibo grid was established on the boundaries of June 14, 2018 and June 21, 2018.
On the 24-hour chart, the pair remains fastened between correction levels of 76.4% to 1.1789 and 100.0% to 1.1553. Bullish divergence in the CCI indicator still allows expecting a growth to the Fibo level of 76.4%. The pair’s retracement from the correction level of 76.4% will allow us to count on a reversal in favor of the US currency and a slight drop towards the correction level of 100.0%. Fixation of the pair above the Fibo level of 76.4% will work in favor of continuing growth in the direction of the next correction level of 61.8% at 1.1938.
The Fibo grid was established on the boundaries of November 7, 2017 and February 16, 2018.
Recommendations for traders:
New purchases of EUR/USD pair can be made with the target of 1.1771 and the Stop Loss level under the correction level of 61.8% if there is a close above the Fibo level of 1.1721.
Selling the EUR / USD pair is possible with the targets of 1,1680 and 1.1639 if there will be a retreat from the correction level of 61.8% and a Stop Loss order above the level of 1.1721.