Analysis of EUR / USD Divergences for July 23. The dollar has been falling for two days
The currency pair EUR / USD on the 4-hour chart continued on Friday the growth process after the formation of bullish divergence in the CCI indicator and performed fixation above the correction level of 61.8% – 1.1721. As a result, on July 23 the growth of quotations can be continued in the direction of the next Fibo level of 76.4% – 1.1771. Brewing divergences today is not observed in any indicator. The retracement of the pair’s rate from the Fibo level of 76.4% will allow traders to expect a reversal in favor of the US currency and a slight drop towards the correctional level of 61.8%.
The Fibo grid is built on the extremes of June 14, 2018 and June 21, 2018.
On the 24-hour chart, a bullish divergence was formed in the CCI indicator, which allowed the quotes to turn in favor of the EU currency and begin the process of returning to the correctional level of 76.4% – 1.1789. Fixing the pair from the Fibo level of 76.4% again will allow us to count on a reversal in favor of the US dollar and a slight drop towards the correction level of 100.0% – 1.1553. The consolidation of the pair’s rate above the Fibo level of 76.4% will increase the likelihood of further growth in the direction of the next correction level of 61.8% – 1.1938.
The Fibo grid is built on extremes from November 7, 2017, and February 16, 2018.
Recommendations for traders:
Purchases of the EUR / USD pair on July 23 can be kept open with the target of 1.1771 with the transferred Stop Loss level under the correction level of 61.8%, as there was a close above the level of 1.1721.
To sell the EUR / USD pair will be possible with the target of 1.1721, if there is a retreat from the correction level of 76.4%, with a Stop Loss order above the Fibo level of 1.1771.