EURUSD, “Euro vs US Dollar”
In the H4 chart, the downtrend continues and has already reached the retracement of 61.8%. The next possible target may be the retracement of 76.0% at 1.1424. The key downside target is this year’s low at 1.3000. The main resistance level is at 1.1693.
As we can see in the H1 chart, EURUSD is testing the short-term low. If the price breaks it, the instrument may continue trading towards the post-correctional extension area between the retracements of 138.2% and 161.8% at 1.1429 and 1.1409 respectively. At the same time, the convergence is being formed, which may indicate a possible pullback after the price reaches its targets.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, the divergence made USDJPY reverse and start a new correction to the downside, which has already reached the retracement of 38.2%. The next targets may be the retracements of 50.0% and 61.8% at 112.47 and 111.98 respectively. The main resistance level is the high at 114.55.
In the H1 chart, after being corrected by 38.2%, the pair started a new short-term pullback.
