Analysis of EUR / USD Divergences on August 20. Euro continues to go up, but for how long?
The currency pair EUR / USD on the 4-hour chart has increased to a correction level of 127.2% – 1.1431. End of quotes from this level of Fibo will allow traders to expect a turn in favor of the American currency and a slight drop towards the corrective level of 161.8% – 1.1333. On August 20, there are no signs of divergence in any indicator. The consolidation of the pair’s rate above the Fibo level of 127.2% will increase the pair’s chances for further growth in the direction of the next correction level of 100.0% – 1.1508.
The Fibo grid is built on extremes from June 21, 2018, and July 9, 2018.
On the 24-hour chart, the quotes completed the turn without forming any signal in favor of the euro and started the growth process towards the correction level of 100.0% – 1.1553. There are no maturing divergences today. The pair’s retracement from the Fibo level of 100.0% will allow traders to expect a reversal in favor of the US dollar and the resumption of the decline in the direction of the correction level of 127.2% to 1.1285. The consolidation of quotations under the Fibo level of 127.2% will increase the chances of further decline towards the corrective level of 161.8% – 1.0941.
The Fibo grid is built on extremes from November 7, 2017, and February 16, 2018.
Recommendations for traders:
New purchases of the EUR / USD pair will be possible for 1.1508 with a Stop Loss order below the Fibo level of 127.2% if the pair completes the closing above the correction level of 1.3431.
Sales of the EUR / USD pair can be opened with the target of 1.1333 if the pair retires from the Fibo level of 127.2%, with a Stop Loss order above 1.1431.