EUR USD, “Euro vs US Dollar”
At the H4 chart, the EUR/USD pair is being corrected to the downside by 23.6%, which means that the tendency may reverse. The next target of this correction may be the retracements of 38.2% and 50% at 1.1605 and 1.1512 respectively.
As we can see at the H1 chart, the pair is moving downwards. The closest short-term target of this decline is the retracement of 161.8% at 1.1670. After reaching the retracement of 38.2% at 1.1605, one should check whether this descending movement is stable, because if the price breaks the local high at 1.1909, it may continue growing towards the retracements of 138.2% and 161.8% at 1.2021 and 1.2094 respectively.
USD JPY, “US Dollar vs. Japanese Yen”
At the H4 chart of the USD/JPY pair, after being corrected by 23.6%, the price continued falling. The pair broke the local low and, as a result, may continue moving downwards to reach the retracements of 138.2% and 161.8% at 109.38 and 109.09 respectively.
At the H1 chart, the situation is pretty similar, but more detailed. The pair is forming the convergence and may reach 109.38 – 109.09, which is a signal of a new correction or even a reverse. The closest targets of this correction may be both the retracements of 38.2% and 50% at 110.38 and 111.16 respectively.
RoboForex Analytical Department