EURUSD, “Euro vs US Dollar”
As we can see in the H4 chart, EURUSD is still consolidating and correcting the previous descending wave; the correctional wave has already tested 38.2% fibo twice after convergence on MACD but right now the asset is mostly trading at 23.6% fibo. The longer the pair is consolidating, the stronger the breakout of the range will be. So far, there are two possible scenarios – a new rising impulse towards 50.0% and 61.8% fibo at 1.1439 and 1.1500 respectively, which is a more likely one, and a further downtrend to reach and break the low at 1.1186. The key resistance remains at 1.1692.
The H1 chart shows that the asset is falling after testing 38.2% fibo and divergence on MACD; by now, it has already tested 50.0% fibo three times. In the future, the pair may continue its decline towards 61.8% and 76.0% fibo at 1.1263 and 1.1234 respectively. The local resistance is the high at 1.1386.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, after breaking the high at 115.52, USDJPY was trying to reach the post-correctional extension area between 138.2% and 161.8% fibo at 116.66 and 117.36 respectively. At the moment, the asset is correcting to the downside. The support remains at the low at 112.53.
The H1 chart shows a more detailed structure of the current correction. After breaking 23.6% fib, the asset is heading towards 38.2% fibo at 114.89. However, the key downside target is 50.0% fibo at 114.44. The local resistance is the high at 116.35.