Analysis of EUR / USD divergence for March 21. Fed helped the euro currency

4h

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The EUR / USD pair on the 4-hour chart, solely due to the Fed's decision not to raise the rate in 2019, continued the growth process and completed the close above the retracement level of 61.8% (1.1420). As a result, on March 21, the growth process can be continued in the direction of the next retracement level of 76.4% - 1.1477. Closing the rate of the pair below the Fibo level of 61.8% can be interpreted as a reversal in favor of the American currency and we can expect a drop in quotations in the direction of the retracement level of 50.0% (1.1374).

The Fibo grid is based on extremums of January 10, 2019, and March 7, 2019.

Daily

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As seen on the 24-hour chart, after fixing quotes above the level of 127.2% (1.1285), the growth process continues in the direction of the retracement level of 100.0% (1.1553). Maturing divergences in both charts are not observed in any indicator. Rebounding quotes from the Fibo level of 100.0% will allow traders to expect a reversal in favor of the US dollar and a slight decline in the direction of the retracement level of 127.2%. Closing a pair below the Fibo level of 127.2% will similarly work in favor of the American currency.

The Fibo grid is based on extremums of November 7, 2017, and February 16, 2018.

Trading recommendations

Buy deals on EUR/USD pair can be opened with the target at 1.1477, as the pair completed closing above the level of 1.1420. The stop loss order under the retracement level of 61.8%.

Sell deals on EUR/USD pair can be carried out with the target at 1.1374 if the pair completes consolidation below the level of 1.1420. The stop loss order above the Fibo level of 61.8%.

The material has been provided by InstaForex Company - www.instaforex.com

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