EUR/USD – 4H.
As seen on the 4-hour chart, the EUR/USD pair still performed an increase to the corrective level of 38.2% (1.1140) even after the formation of a bearish divergence in the CCI indicator. The rebound from this Fibo level worked in favor of the US currency and the resumption of the fall, according to the trading ideas that I have voiced in the last few days. At the moment, the pair has made a drop to the corrective level of 50.0% (1.1109). I believe that traders will be able to break through this level today. The targets for falling quotes of the pair remain the same. The minimum is 1.1042 and the maximum is 1.0981. At the same time, if something prevents the pair from gaining a foothold under the previous local lows (1.1085), I will consider that the downward potential is exhausted or not convenient for working out and all sell signals will be considered canceled.
Forecast and trading recommendations for EUR/USD:
The long-term trading idea remains in force, as the pair’s quotes performed a consolidation under the upward small corridor on the 24-hour chart. Traders got a target for a drop of about 250 points – around the level of 1.0850. The deadline is one to two weeks.
For the second trading idea, I still expect a fall during the week to the corrective levels of 1.1042 and 1.0981. Bearish divergence + rebound from the Fibo level of 38.2% indicates the beginning of a new fall in the pair. Closing quotes below the corrective level of 50.0% will increase the probability of continuing the fall.