EURUSD, “Euro vs US Dollar”
As we can see in the H4 chart, the convergence made EURUSD reverse and start a new uptrend, which has already reached the retracement of 23.6%. The next upside targets may be the retracements of 38.2% and 50.0% at 1.1855 and 1.1962 respectively. The support level is the low at 1.1510.
In the H1 chart, the divergence is being formed, thus indicating a new pullback to the downside, which has already reached the retracement of 23.6%. The next targets may be the retracements of 38.2% and 50.0% at 1.1655 and 1.1627 respectively. If the instrument breaks the high at 1.1744, the uptrend may continue.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, after finishing the descending impulse, USDJPY has started a new short-term correction to the upside. However, the main downtrend continues and has already reached the retracement of 38.2%. The next downside targets may be the retracements of 50.0% and 61.8% at 108.02 and 107.22 respectively. The resistance level is the high at 111.40.
In the H1 chart, the uptrend reached the retracement of 50.0% and may continue towards the one 61.8% at 110.14. At the same time, the divergence is being formed, which may indicate a possible correction to the downside towards the retracements of 23.6%, 38.2%, and 50.0% at 109.56, 109.28, and 109.06 respectively.
