Analysis of EUR / USD Divergences on August 7. Bull divergence allows the euro to recover
The currency EUR / USD on the 4-hour chart reversed in favor of the euro and began the process of returning to the correction level of 76.4% – 1.1576, after the bullish divergence of the CCI indicator. Quit on August 7 from the Fibo level of 76.4% will count on a reversal in favor of the US currency and the resumption of the decline in the direction of the correction level of 100.0% – 1.1508. The consolidation of the pair’s rate above the Fibo level of 76.4% will work in favor of continuing growth towards the next correction level of 61.8% – 1.1617.
The Fibo grid is built on extremes from June 21, 2018 and July 9, 2018.
On the 24-hour chart, the pair quotes fell to the correction level of 100.0% – 1.1553. The pair’s retreat from the Fibo level of 100.0% will allow traders to expect a turn in favor of the European currency and some growth in the direction of the correctional level of 76.4% – 1.1789. Brewing divergences today is not observed in any indicator. The consolidation of quotations under the correction level of 100.0% will increase the chances of further falling in the direction of the next Fibo 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 can now be carried out with the target of 1.1576 and the Stop Loss level under the low divergence, since a bullish divergence has been formed. Closing above the level of 1.1576 will allow to hold purchases with the goal of 1.1617.
Sales of the EUR / USD pair can now be carried out with the aim of 1,1508, if the retracement from the correction level is 76.4%, with a Stop Loss order above 1.1576.