25.06.201809:05 Forex Analysis & Reviews: Divergence analysis of EUR / USD on June 25. Bulls did not give up on Friday, but bearish divergence breaks out

4h

The EUR / USD pair on the 4-hour chart performed fixation above the correction level of 61.8% - 1.1639. As a result, the growth process can be continued in the direction of the next corrective level of 50.0% - 1.1680. The retracement of the pair's rate from the Fibo level of 50.0% will allow traders to expect a reversal in favor of the US currency and a slight drop toward the correction levels of 61.8% and 76.4% to 1.1589. June 25 is maturing bearish divergence in the MACD indicator. Its formation will similarly work in favor of the US dollar and will allow expecting a certain drop in quotations.

The Fibo grid is built on extremes from May 29, 2018, and June 14, 2018.

Daily

On the 24-hour chart, after the rebound from the Fibo level of 100.0% and the formation of bullish divergence, the quotes executed a turn in favor of the EU currency and continue the growth process towards the correction level of 76.4% to 1.1789. The pair's retardation from the Fibo level of 76.4% will allow us to count on a reversal in favor of the US dollar and a return to the correction level of 100.0% - 1.1553. The consolidation of the pair's rate below the Fibo level of 100.0% will increase the chances of further decline towards the next corrective level of 127.2% to 1.1285.

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

Recommendations for traders:

Purchases of the EUR / USD pair can be resumed with targets of 1,1721 and 1,1771, and with a Stop Loss order under the correction level of 50.0% if there is a close above 1.1680 and hold until the formation of a bearish divergence.

To sell the EUR / USD pair will be possible with the target of 1,1589 if there is a retreat from the correction level of 50.0%, especially in conjunction with the bearish divergence, and with the Stop Loss order above the level of 1.1680.