XAUUSD, “Gold vs US Dollar”
As we can see in the H4 chart, after completing the descending impulse, the asset started growing and has already tested the previous local high. If XAUUSD isn’t strong enough to start a new decline, then the price may continue growing to reach 50.0% and 61.8% fibo at 1919.00 and 1956.50 respectively. However, one shouldn’t disregard a divergence on MACD, which may hint at further mid-term decline towards the low at 1764.36. If the pair breaks this level, it will continue falling to reach the target at 38.2% fibo (1725.37).
The H1 chart shows a more detailed structure of the current correction after a divergence on MACD. After breaking 23.6% fibo, it has yet failed to reach 38.2% fibo at 1852.28. The next downside targets may be 50.0% and 61.8% fibo at 1835.59 and 1818.90 respectively. However, a breakout of the local high at 1906.73 will result in further trend to the upside.
USDCHF, “US Dollar vs Swiss Franc”
As we can see in the H4 chart, the situation hasn’t changed much. After leaving the post-correctional extension area between 138.2% and 161.8% fibo at 0.8886 and 0.8816 respectively to the upside, USDCHF is moving upwards and this growth can be considered as a correction after a long-term convergence on MACD. The correctional target remains at the resistance at 0.8999.
In the H1 chart, the pair is correcting upwards after a convergence on MACD. Judging by the price movement in this area, it is trying to fix above 23.6% fibo before further growth towards 38.2% fibo at 0.8926. Later, the market may continue growing towards 50.0% and 61.8% fibo at 0.8957 and 0.8990 respectively. A breakout of the support at 0.8822 will complete this correction.