Analysis of EUR/USD divergence on May 6. The euro is looking for arguments in opposition to the dollar
May 6, 2019 11:24 am
4h
As seen on the 4-hour chart, the EUR/USD pair performed a reversal in favor of the euro and consolidation above the retracement level of 100.0% (1.1177). As a result, on May 6, the growth process of quotations can be continued in the direction of the next retracement level of 76.4% (1.1241). Today, emerging divergence is not observed on any indicator. The closing of the pair below the Fibo level of 100.0% will work in favor of the US dollar and the resumption the fall in the direction of the retracement level of 127.2% (1.1102).
The Fibo grid is built according to the extremes of March 7, 2019, and March 20, 2019.
Daily
As seen on the 24-hour chart, the pair did not reach the retracement level of 127.2% (1.1285) and is located below this level, thus maintaining the chances of a resumption of the fall in the direction of the retracement level of 161.8% (1.0941). There are no emerging divergences on the current chart. Only the closing of the pair above the Fibo level of 127.2% will work in favor of the EU currency and the resumption of growth in the direction of the retracement level of 100.0% (1.1553).
The Fibo grid is built according to the extremes of November 7, 2017, and February 16, 2018.
Forecast for EUR/USD and trading recommendations:
Buy deals on EUR/USD pair can be opened with the target at 1.1241 since the pair completed the closing above the level of 100.0%. The stop loss order should be placed below the level of 1.1177.
Sell deals on EUR/USD pair can be opened with the target at 1.1102 if the pair consolidates below the retracement level of 100.0%. The stop loss order should be placed above the level of 1.1177.
The material has been provided by InstaForex Company – www.instaforex.com
4h
As seen on the 4-hour chart, the EUR/USD pair performed a reversal in favor of the euro and consolidation above the retracement level of 100.0% (1.1177). As a result, on May 6, the growth process of quotations can be continued in the direction of the next retracement level of 76.4% (1.1241). Today, emerging divergence is not observed on any indicator. The closing of the pair below the Fibo level of 100.0% will work in favor of the US dollar and the resumption the fall in the direction of the retracement level of 127.2% (1.1102).
The Fibo grid is built according to the extremes of March 7, 2019, and March 20, 2019.
Daily
As seen on the 24-hour chart, the pair did not reach the retracement level of 127.2% (1.1285) and is located below this level, thus maintaining the chances of a resumption of the fall in the direction of the retracement level of 161.8% (1.0941). There are no emerging divergences on the current chart. Only the closing of the pair above the Fibo level of 127.2% will work in favor of the EU currency and the resumption of growth in the direction of the retracement level of 100.0% (1.1553).
The Fibo grid is built according to the extremes of November 7, 2017, and February 16, 2018.
Forecast for EUR/USD and trading recommendations:
Buy deals on EUR/USD pair can be opened with the target at 1.1241 since the pair completed the closing above the level of 100.0%. The stop loss order should be placed below the level of 1.1177.
Sell deals on EUR/USD pair can be opened with the target at 1.1102 if the pair consolidates below the retracement level of 100.0%. The stop loss order should be placed above the level of 1.1177.
The material has been provided by InstaForex Company – www.instaforex.com
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