Analysis of EUR / USD Divergences on August 6. The unrestrained fall of the euro continues
The EUR / USD pair on the 4-hour chart executed the fixation under the correction level of 76.4% to 1.1575 and continues the fall process towards the next corrective level of 100.0% to 1.1508. Brewing divergences on August 6 are not observed in any indicator. The consolidation of the pair’s rate above the Fibo level of 76.4% can be interpreted as a turn in favor of the European currency and expect some growth in the direction of the correction level of 61.8% – 1.1616.
The Fibo grid is built on extremes from June 21, 2018, and July 9, 2018.
On the 24-hour chart, the pair quotes made a return to the corrective level of 100.0% – 1.1553. The pair’s exit from the Fibo level of 100.0% will allow traders to count on a turn in favor of the EU currency and some growth in the direction of the correction level of 76.4% – 1.1789. There are no maturing divergences today. Fixing the quotes below the Fibo level of 100.0% will increase the chances of further falling towards the next 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 target of 1,1616 and the Stop Loss level under the correction level of 76.4% if there is a close above the Fibo level of 1.1575.
Sales of the EUR / USD pair can now be carried out with the aim of 1,1508, as the closing was completed under the correction level of 76.4%, with the Stop Loss order above 1.1575.