EURUSD, “Euro vs US Dollar”
As we can see in the daily chart, the asset seems to be forming a long-term consolidation range. But really the pair is forming the second descending wave within the bearish phase. The closest downside target is at 38.2% fibo at 1.1695 but the price may reach it after a short-term correction to the upside. After breaking the target, the asset will continue falling to reach 50.0% and 61.8% fibo at 1.1493 and 1.1292 respectively. The resistance is the long-term high at 1.2350.
The H4 chart shows a slow decline and convergence on MACD. Such a technical picture implies that the market is waiting for important news, such as the Fed rate decision to be published tomorrow. Also, the chart offers potential upside correctional targets, which are 23.6%, 38.2%, and 50.0% fibo at 1.1873, 1.1948, and 1.2009 respectively. A breakout of the local low and the support at 1.1752 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 USDJPY is correcting upwards after falling and testing 23.6% fibo. The correction is about to complete soon and may be followed by 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 new descending structure after divergence on MACD, which has already broken 23.6% fibo and may later continue to reach 38.2%, 50.0%, 61.8%, and 76.0% fibo at 110.01, 109.83, 109.65, and 109.44 respectively. The key downside target is at 109.07. The local resistance is at 110.59.