FX.co ★ Analysis of the divergence of EUR / USD for December 7th. Euro is preparing to return to 1.13

4h

The EUR / USD currency pair has completed some growth in the direction of the correctional level of 76.4% - 1.1423. The formation of a bearish divergence in the CCI indicator allows traders to expect a reversal in favor of the American currency and a slight drop in the direction of the correction level of 100.0% - 1.1303. Fixing the quotations of the pair on December 7 above the Fibo level 76.4% will work in favor of continuing growth in the direction of the next correctional level of 61.8% - 1.1497.

The Fibo grid is built on extremes from August 15, 2018, and September 24, 2018.

Daily

On the 24-hour chart, quoting quotes from Fibo level of 127.2% - 1.1285 allows you to count on continued growth in the direction of the correction level of 100.0% - 1.1553. Maturing divergences in the current chart are not observed in any indicator. Fixing the pair under the correction level of 127.2% can be interpreted as a reversal in favor of the American dollar and expect a resumption of a fall in the direction of the Fibo level of 161.8% - 1.0941.

The Fibo grid is built on extremums from November 7, 2017, and February 16, 2018.

Recommendations to traders:

New purchases of the EUR / USD currency pair can be made with the target of 1.1497 and a Stop Loss order below the Fibo level of 76.4% if the pair closes above 1.1423.

Sales of the EUR / USD currency pair can be made with the goal of 1.1303 with a Stop Loss order above the Fibo level of 76.4% since a bearish divergence has formed.