EURUSD, “Euro vs US Dollar”
As we can see in the H4 chart, the divergence made the pair stop at 61.8% fibo and start a new decline, which may reach 50.0% and 38.2% fibo at 1.1595 and 1.1370 respectively. After completing the correction, EURUSD may resume trading upwards to reach 76.0% fibo at 1.2095.
The H1 chart shows a more detailed structure of the current correctional downtrend after the divergence. The price has already reached 23.6% fibo and may continue towards 38.2%, 50.0%, and 61.8% fibo at 1.1633, 1.1547, and 1.1462 respectively. However, if the price breaks the high at 1.1909, the correction will be over.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, after breaking 61.8% fibo but failing to reach 76.0% fibo at 103.70, the downtrend was stopped by the convergence on MACD, that’s why USDJPY is currently correcting upwards and has already reached the resistance area at 50.0% fibo (106.45). If the price breaks this level and fixes above it, the instrument may confirm a reversal and start a new growth towards the high at 111.71.
The H1 chart shows a new rising movement after the convergence on MACD. By now, the pair has reached 38.2% fibo. Later, the price may continue the correction towards 50.0%, 61.8%, and 76.0% fibo at 107.02, 107.68, and 108.49 respectively. The support is the local low at 104.18.