XAUUSD, “Gold vs US Dollar”
The H4 chart of XAUUSD shows the correction that started after the convergence. By now, it has already reached the retracement of 23.6%. The next upside targets may be the retracements of 38.2%, 50.0%, and 61.8% at 1296.89, 1306.46, and 1315.96 respectively. If the price breaks the low at 1266.23, the instrument may continue falling towards the mid-term retracement of 61.8% at 1253.80.
As we can see in the H1 chart, the divergence made the pair start a new short-term correction, which has already reached the retracement of 38.2%. The next downside targets may be the retracements of 50.0%, 61.8%, and 76.0% at 1278.82, 1275.87, and 1272.33 respectively. If the price breaks the high at 1291.46, the instrument may continue its mid-term correction.
USDCHF, “US Dollar vs Swiss Franc”
In the H4 chart, USDCHF is still trading downwards; it has already reached the retracement of 38.2%. The next downside targets may be the retracements of 50.0% and 61.8% at 1.0065 and 1.0025 respectively. After completing the correction and breaking the previous high at 1.0236, the instrument may continue growing to reach the post-correctional extension area between the retracements of 138.2% and 161.8% at 1.0246 and 1.0306 respectively.
As we can see in the H1 chart, there is a divergence on MACD, which may indicate a possible pullback. The targets of this pullback may be the retracements of 23.6, 38.2%, and 50.0% at 1.0116, 1.0134, and 1.0149 respectively. The support is the low at 1.0087.
