10.07.201813:33 Forex Analysis & Reviews: Analysis of EUR / USD Divergences on July 10. European currency surrendered on Monday

4h

The pair EUR / USD on the 4-hour chart, after the formation of the second consecutive bearish divergence, executed a turn in favor of the US currency and consolidation under the correction level of 76.4% - 1.1771. As a result, the fall of the pair can be continued in the direction of the next Fibo level of 61.8% - 1.1721. July 10 is maturing bullish divergence in the CCI indicator. Its formation will allow us to count on a turn already in favor of the euro and the resumption of growth towards the corrective level of 100.0% - 1.1852.

The Fibo grid is built on the extremes of June 14, 2018, and June 21, 2018.

Daily

On the 24-hour chart, the pair completed growth to a correction level of 76.4% to 1.1789. Quit of quotes from the level of Fibo 76.4% allows you to count on a reversal in favor of the US dollar and a slight drop in the direction of the correction level of 100.0% - 1.1553. Also, the bearish divergence of the CCI indicator is maturing, which increases the probability of rebound from the Fibo level of 76.4%. The consolidation of quotations above the correction level of 76.4% will work in favor of continuing growth towards the next Fibo level of 61.8% - 1.1938.

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

Recommendations for traders:

Buy the pair EUR / USD on July 10 will be possible with the target of 1,1852 with a Stop Loss level below the Fibo level of 76.4% if there is a close above the correction level of 1,1789 (daily chart), especially in conjunction with bullish divergence on the 4-hour graphics.

The EUR / USD pair can now be traded with a target of 1.1721, as there was a close under the Fibo level of 76.4%, with a Stop Loss order above 1.1771 before the formation of a bullish divergence.