Analysis of EUR / USD Divergences on August 23. Bearish divergence allowed the dollar to strengthen
The currency pair EUR / USD on the 4-hour chart reversed in favor of the US currency, after the bearish divergence of the CCI indicator, and the fall to the correctional level of 50.0% – 1.1546. The cut-off of quotes from the Fibo level of 50.0% will allow traders to count on a turn in favor of the euro and some growth in the direction of the correction level of 61.8% – 1,1603. The consolidation of the pair’s rate below the Fibo level of 50.0% will increase the chances of the pair to further fall towards the next correction level of 38.2% – 1.1490.
The Fibo grid is built on extremes from July 9, 2018 and August 15, 2018.
On the 24-hour chart, the pair performed fixing above the correction level of 100.0% – 1.1553. Thus, the growth of quotations can be continued in the direction of the next Fibo level of 76.4% – 1.1789. August 23, there are no signs of divergence in any indicator. Fixing the pair under the correction level of 100.0% can be interpreted as a reversal in favor of the US currency and expect a slight decline towards the corrective level of 127.2% – 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 will be possible with the aim of 1,1603 with a Stop Loss order under the Fibo level of 50.0% if the pair retires from the correction level of 1.1546.
Sales of the EUR / USD pair will be possible with the target of 1,1490 if the pair completes the closing at the Fibo level of 50.0%, with a Stop Loss order above 1.1546.