Analysis of the divergence of EUR / USD on October 9. The bullish divergence stops the US dollar growth
After the formation of a bearish divergence, the EUR / USD currency pair fell below the correction level of 61.8% – 1.1497. However, the formation of a new bullish divergence allowed the pair to make a U-turn in favor of the European currency and a return to the Fibo level of 61.8%. Fixing quotes on October 9 above the correction level of 61.8% will increase the likelihood of further growth in the direction of the next Fib level 50.0% – 1.1558. A passage of the last low divergence pair will work in favor of resuming the fall.
The Fibo grid is built on extremes from August 15, 2018, and September 24, 2018.
On the 24-hour chart, the currency pair closed below the correction level of 100.0% – 1.1553. As a result, the drop in quotations can be continued in the direction of the next correction level of 127.2% – 1.1285. There are no maturing divergences on the current chart. Fixing the pair above the Fibo level of 100.0% can be interpreted as a turn in favor of the euro and rely on some growth in the direction of the 76.4% correction level of 1.1789.
The Fib net is built on extremums from November 7, 2017, and February 16, 2018.
Recommendations to traders:
You can make purchases of the EUR / USD currency pair with a target of 1.1558 with a Stop Loss order below the Fibo level of 61.8% if the pair closes above the correction level of 1.1497.
Sales of the EUR / USD currency pair can be carried out with the target of 1.1424 with a Stop Loss order above the Fibo level of 61.8% if the pair bounces off the level of 1.1497.