EURUSD, “Euro vs US Dollar”
As we can see in the H4 chart, the correctional downtrend has reached the local support, which is 23.6% fibo at 1.1005. this level was the key correctional targets, which means that the pullback is about to finish and later the price may start forming a new rising wave towards 61.8% and 76.0% fibo at 1.1208 and 1.1248 respectively.
In the H1 chart, the convergence on MACD made the pair stop its decline at 1.1005 and start a new rising movement towards 23.6%, 38.2%, 50.0%, 61.8%, and 76.0% fibo at 1.1054, 1.1077, 1.1096, 1.1115, and 1.1138 respectively. the support is the low at 1.1016.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, after the pullback towards 50.0% fibo, the ascending tendency continues. After updating the high, USDJPY has reached mid-term 61.8% fibo and right now is moving towards the upside border of the post-correctional extension area between 138.2% and 161.8% fibo at 109.23 and 109.70 respectively. If the price breaks this range and fixes above it, the market may continue growing to reach the next mid-term target, 76.0% fibo at 110.50. At the same time, there is a long-term divergence on MACD, which may indicate a possible reverse soon.
In the H1 chart, the divergence made the pair finish the rising wave and start a new descending correction, which has already tried to test 38.2% fibo at 108.88. The current local growth is just an internal pullback. The next descending wave may break the above-mentioned level and then continue falling to reach 50.0% and 61.8% fibo at 108.69 and 108.50 respectively. The resistance is at 109.49.
