25.04.201909:02 Forex Analysis & Reviews: Analysis of EUR/USD divergences for April 25th. Bullish divergence predicts euro pullback

4h

As seen on the 4-hour chart, the EUR/USD pair has completed the consolidation under the Fibo level of 100.0% (1.1177), which allows traders to count on the continuation of the fall in the direction of the next retracement level of 127.2% (1.1102). However, the bullish divergence of the CCI indicator formed on April 25 allows us to expect a reversal of the pair in favor of the EU currency and a return to the retracement level of 100.0%. Closing of the pair's rate above the Fibo level of 100.0% will work in favor of continuing growth in the direction of the retracement level of 76.4% (1.1241).

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 performed a consolidation under the retracement level of 127.2% (1.1285) and under the previous two lows. Thus, the fall of the pair can be continued in the direction of the next retracement level of 161.8% (1.0941). Today, the emerging divergence is not observed on any indicator. The consolidation of the pair's quotes above the Fibo level of 127.2% can be interpreted as a reversal in favor of the European currency and expect some 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 if the pair completes above the retracement 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 performs the passage of low divergence. The stop loss order should be placed above the level of 1.1177.