EURUSD, “Euro vs US Dollar”
As we can see in the H4 chart, the ascending correctional wave has tested the long-term 61.8% fibo; right now, the divergence is competing this wave and the asset may start a new mid-term decline soon. The closest downside target will be 38.2% fibo at 1.1520. However, one should not that the instrument may yet continue growing towards the high at 1.2011 and the long-term 76.0% fibo at 1.2094.
The H1 chart shows a wave to the upside after a convergence, which has reached 50.0% fibo. At the same time, a divergence is about to finish the uptrend but another rising impulse may yet reach 61.8% fibo at 1.1859. If the divergence is a reversal signal, then the asset may confirm a new decline by breaking the support area at 1.1765. In this case, the downside target will be the low at 1.1612.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, after USDJPY is falling after a divergence and testing the area not far from 38.2% fibo at 106.24. If the price doesn’t fall towards the low at 104.00, the market may continue trading upwards to reach 38.2%, 50.0%, and 61.8% fibo at 106.24, 106.92, and 107.61 respectively. The current decline should be considered as a correction.
НThe H1 chart shows a more detailed structure of the wave to the downside after the divergence. The descending wave has reached 38.2% fibo and right now is testing it. The next downside targets will be at 50.0% and 61.8% fibo at 105.60 and 104.81 respectively. If the asset breaks the high at 106.11, the pair will finish the correction and resume its mid-term growth.
