EURUSD, “Euro vs US Dollar”
As we can see in the H4 chart, a divergence on MACD made the pair start a strong correctional wave to the downside, which, after breaking 61.8% fibo, has yet failed to reach 76.0% fibo at 1,1840. The current movement in EURUSD may be considered as an early short-term correction. After completing it, the asset may form a new descending wave towards the low and 50.0% fibo at 1.1704 and 1.1695 respectively. The key resistance is the high at 1.2266.
The H1 chart shows potential upside correctional targets after a descending impulse and a convergence on MACD – 23.6%, 38.2%, and 50.0% fibo at 1.1935, 1.1989, and 1.2032 respectively. A breakout of the local support at 1.1847 will complete the pullback and lead to a further downtrend.
USDJPY, “US Dollar vs. Japanese Yen”
In the H4 chart, after finishing the pullback, USDJPY is still growing to break the local high at 110.97 and then reach the long-term one at 111.71, a breakout of which may lead to a further uptrend towards the post-correctional extension area between 138.2% and 161.8% fibo at 112.39 and 113.12 respectively. The support is the fractal low at 107.48.
The H1 chart shows a steady growth to reach the local high at 110.82 after a correctional decline towards 23.6% fibo. Possibly, the pair may rebound from the high and form a new descending wave to reach 38.2% and 50.0% fibo at 109.54 and 109.15 respectively.
