Konstantin Boykachev

CEO Proforexea LLC

Honest Coder

Professional Trader

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Konstantin Boykachev

CEO Proforexea LLC

Honest Coder

Professional Trader

Blog Post

Analysis of EUR / USD Divergences on August 17. The Euro-currency is preparing for a new fall

August 18, 2018 Analytics

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4h

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The currency pair EUR / USD on the 4-hour chart continues the growth process towards the corrective level of 127.2% – 1.1431 after fixing over the Fibo level 161.8% – 1.1333. On August 17, the bearish divergence of the CCI indicator is brewing. Its formation will allow traders to count on a u-turn in favor of the US currency and a slight drop towards the correction level of 161.8%. The pair’s retracement from the Fibo level of 127.2% will similarly work in favor of the beginning of the fall of quotations.

The Fibo grid is built on extremes from June 21, 2018 and July 9, 2018.

Daily

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On the 24-hour chart, the process of falling quotations can be continued in the direction of the correction level of 127.2% – 1.1285. The pair’s retreat from the Fibo level of 127.2% will allow to expect a turn in favor of the EU currency and some growth in the direction of the correction level of 100.0% – 1.1553. Today, there is no visible divergence in any indicator. Fixing the quotes below the Fibo level of 127.2% will increase the chances of the pair to further fall in the direction of the next correction level of 161.8% – 1.1285.

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

Recommendations for traders:

Purchases of the EUR / USD pair can now be carried out with a target of 1.1431 with a stop loss order under the Fibo level of 161.8%, since the pair completed the closing above the correction level of 1.3333 with the formation of a bullish divergence. You can keep buying until the formation of a bearish divergence.

New sales of the EUR / USD pair can be opened with targets of 1,1333 and 1,1227 if the pair retires from the Fibo level of 127.2%, with a Stop Loss order above 1.1431 or if a bearish divergence is formed.

The material has been provided by InstaForex Company – www.instaforex.com

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