EURUSD, “Euro vs US Dollar”
In the daily chart, the convergence on MACD made the pair complete a strong descending impulse and start a new correctional uptrend, which has already reached 23.6% fibo and may later continue towards 38.2% and 50.0% fibo at 1.1370 and 1.1595 respectively, thus reversing the long-term trend. Still, onу shouldn’t exclude the possibility of another descending impulse. If EURUSD breaks the low at 1.0635, the instrument may continue falling to reach the post-correctional extension area between 138.2% and 161.8% fibo between 1.0503 and 1.0336 respectively.
As we can see in the H1 chart, the divergence forced the pair reverse after reaching 61.8% fibo at 1.1167 and start a new short-term pullback, which has already reached 23.6% fibo. In the future, the price may continue falling towards 38.2%, 50.0%, 61.8%, and 76.0% fibo at 1.0951, 1.0852, 1.0830, and 1.0758 respectively. If later the instrument breaks the latter level, it may continue falling to reach the low at 1.0635. However, if the pair breaks the high at 1.1147, the price may continue trading upwards.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, the divergence made the pair reverse after reaching the high at 112.23 and start a new decline. The current technical picture indicates that this decline may continue down to the low at 101.18 or even lower, the post-correctional extension area between 138.2% and 161.8% fibo between 101.48 and 99.66. To throw light on a future trend, it’s better to check changes on shorter timeframes.
In the H1 chart, the convergence made the price start a new rising tendency after reaching 61.8% fibo. The short-term upside targets may be the high at 111.71.