EURUSD, “Euro vs US Dollar”
As we can see in the H4 chart, the asset is rising after reaching 76.0% fibo and convergence on MACD. At the same time, if this convergence forces the asset to form not just a pullback but a proper ascending wave, the pair may reach the short/long-term highs at 1.2266 and 1.2350 respectively. However, if the price completes the pullback without updating the high, the instrument may fall to break the mid-term low at 1.1704 and then continue moving towards the long-term 50.0% fibo at 1.1695.
The H1 chart shows potential correctional targets after convergence. At the moment, after completing a short-term sideways correction, the pair is approaching 23.6% fibo at 1.1895 and may later continue moving towards 38.2% and 50.0% fibo at 1.1966 and 1.2024 respectively. A breakout of the local low and the support at 1.1781 will complete the pullback and lead to a further downtrend.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, the first descending wave after divergence on MACD tested 23.6% fibo at 109.52 and then rebounded from it, which may be considered as a pullback to the upside. After the pullback is over, the instrument may start another descending wave to reach 38.2% and 50.0% fibo at 108.20 and 107.13 respectively. The local resistance is at 111.66.
The H1 chart shows a correctional uptrend after the previous descending impulse. By now, the pair has reached 38.2% fibo and may later continue growing towards 50.0% and 61.8% fibo at 110.60 and 110.85 respectively. After that, the instrument may start a new descending impulse to break the low at 109.53.
