Source: Forex Analysis
As seen on the 4-hour chart, the EUR/USD pair performed a rebound from the retracement level of 61.8% (1.1281) with the formation of a bullish divergence in the CCI indicator. As a result, the pair made a turn in favor of the European currency and began the process of growth in the direction of the Fibo level of 50.0% (1.1313). Closing the pair above the 50.0% level will work in favor of continuing growth of quotations in the direction of the next retracement level of 38.2% (1.1344). The rebound of the pair from the Fibo level of 50.0% will allow traders to expect a return to the retracement level of 61.8%.
The Fibo grid was built on extremums from March 7, 2019, and March 20, 2019.
As seen in the 24-hour chart, the pair closed above the retracement level of 127.2% – 1.1285. However, the emerging divergence of the CCI indicator has not been canceled and still allows traders to expect a reversal in favor of the US currency and a resumption of decline in the direction of the Fibo level of 161.8% (1.0941). Closing the EUR/USD pair below the level of 127.2% will similarly increase the probability of the quotes falling.
The Fibo grid was built on extremes from November 7, 2017, and February 16, 2018.
Forecast for EUR/USD and trading recommendations:
Buy deals on EUR/USD pair can be opened with targets at 1.1313 and 1.1344 as the pair completed the rebound from the retracement level of 61.8%. The stop loss order should be placed below the level of 1.1281.
Sell deals on EUR/USD pair can be opened with the targets at 1.1281 and 1.1241 if the pair rebounds from the level of 50.0%. The stop loss order should be placed above the level of 1.1313.
The material has been provided by InstaForex Company – www.instaforex.com