FX.co ★ Analysis of the divergence of EUR / USD on February 13. Two rebounds = growth of euro currency

4h

The EUR / USD currency pair on the 4-hour chart completed the fall to the level of 1.1269 and rebound from it with a turn in favor of the European currency. As a result, the growth of quotations began in the direction of the correctional level of 23.6% - 1.1358. Releasing the pair on February 13 from this Fibo level will allow us to count on a reversal in favor of the US dollar and a return to the level of 1.1269. Fixing the pair's rate above the Fibo level of 23.6% will work in favor of continuing growth in the direction of the next level of correction 38.2% - 1.1446.

The Fibo grid was built on extremums from September 24, 2018, and November 12, 2018.

Daily

On the 24-hour chart, the currency pair rebounded from the correction level of 127.2% - 1.1285 and a turn in favor of the EU currency. Thus, the process of growth in the direction of the Fibo level of 100.0% - 1.1553 began. Maturing divergences in the current chart are not observed in any indicator. Fixing quotes under the correction level of 127.2% can be interpreted as a reversal in favor of the US currency and we expect a resumption of the fall in the direction of the correctional 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 pair will be possible with the goal of 1.1446 if the pair closes above the correction level of 23.6% and a Stop Loss order below the level of 1.1358.

Sales of the EUR / USD pair can be carried out with the target of 1.1269 if the pair rebounds from the level of 23.6%, and a Stop Loss order above the level of 1.1358.