EURUSD, “Euro vs US Dollar”
As we can see in the H4 chart, after finishing the correction by breaking the key low, EURUSD has closed the first post-correctional extension area between 138.2% and 161.8% fibo at 1.0942 and 1.0889 respectively. The current decline is heading towards the next post-correctional extension area between 138.2% and 161.8% fibo at 1.0856 and 1.0813 respectively. The long-term downtrend is looking quite stable, but there is a convergence on MACD, which may indicate a possible reverse soon. The resistance is at 1.1110.
Looking at the H1 chart, we may assume that the current descending wave is looking stable with a short pause close to the downside border of the post-correctional extension area between 138.2% and 161.8% fibo at 1.0942 and 1.0889 respectively. At the same time, there is a local convergence on MACD. Taken together, these factors may indicate a possible pullback in the future. The targets may be at 23.6%, 38.2%, and 50.0% fibo at 1.0929, 1.0957, and 1.0979 respectively.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, having completed the correctional downtrend at 38.2% fibo, USDJPY is starting a new ascending wave. In the future, there are two possible scenarios: the pair either rebounds from the high or breaks it. If the market fails to break the high at 108.48, the instrument may start a new descending wave to reach 50.0%, 61.8%, and 76.0% fibo at 106.46, 105.99, and 105.42 respectively. Otherwise, the price may reach the mid-term correctional target at 61.8% fibo at 109.37.
In the H1 chart, after reaching 76.0% fibo, the pair heading towards the high. However, there is a local divergence on ACD, which may indicate a new pullback after the price reached the resistance near the high. The target of this pullback may be the support at 50.0% fibo at 107.71.
