EURUSD, “Euro vs US Dollar”
As we can see in the daily chart, EURUSD is forming a steady descending wave towards the long-term 50.0% fibo at 1.1493. Of course, this decline may continue down to 61.8% fibo at 1.1293 but convergence on MACD may hint at a possible reversal. If it happens, the asset may resume moving upwards to update the high at 1.2350.
The H1 chart shows the start of a short-term correction after local convergence on MACD. The first rising wave tried to test 23.6% fibo at 1.1645 but failed and transformed into a new decline towards the low at 1.1563. However, the low hasn’t been broken yet. If the pair rebounds from this level, the asset may extend the correction up to 38.2% and 50.0% fibo at 1.1695 and 1.1736 respectively. On the other hand, a breakout of the low will lead to a further downtrend.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, USDJPY is correcting downwards after breaking the high at 111.66. After finishing the pullback, the asset may continue growing towards the post-correctional extension area between 138.2% and 161.8% fibo at 112.78 and 113.47 respectively. The support is the local low at 108.72.
The H1 chart shows a more detailed structure of the current descending correction after divergence on MACD. The pair has reached 38.2% fibo and may yet continue falling towards 50.0% fibo at 110.59. At the same time, convergence on the indicator may hint at a new rising impulse after the asset finishes the pullback.
