Analysis of EUR / USD Divergences on August 8. The bullish divergence supported the Euro-currency
The EUR / USD pair on the 4-hour chart fixed over the correction level of 61.8% to 1.1617, after the bullish divergence of the CCI indicator. As a result, the growth process can be continued on August 8 in the direction of the next corrective level of 50.0% – 1.1649. No new brewing divergences are observed in any indicator. The consolidation of the pair’s rate under the Fibo level of 61.8% can be interpreted as a reversal in favor of the US currency and expect a slight decline in the direction of the correction level of 76.4% – 1.1576.
The Fibo grid is built on extremes from June 21, 2018 and July 9, 2018.
On the 24-hour chart, the pair’s quotes cleared from the correction level of 100.0% to 1.1553 and a reversal in favor of the EU currency. Thus, the growth of quotations began in the direction of the Fibo level of 76.4% – 1.1789. There are no maturing divergences today. The consolidation of quotations under the correction level of 100.0% will work in favor of the US dollar and the resumption of the fall of the pair in the direction of 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 can now be carried out with the target at 1.1649 and the Stop Loss level below the Fibo level of 61.8%, as the pair completed the closing above the correction level of 1.1617.
Sales of the EUR / USD pair will be possible with the target of 1,1576 if the closing is carried out under the correction level of 61.8%, with a Stop Loss order above the level of 1.1617.