EURUSD, “Euro vs US Dollar”
As we can see in the H4 chart, EURUSD is forming a new ascending impulse. If the instrument breaks the short-term high, the pair may trade towards the post-correctional extension area between the retracements of 138.2% and 161.8% at 1.2433 and 1.2455 respectively. The main upside target is the high at 1.2555. The support level is the low at 1.2299.
In the H1 chart, the uptrend is moving towards the post-correctional extension area between the retracements of 138.2% and 161.8%. At the same time, the divergence is being formed, which may indicate a new correction after the instruments reaches its upside targets.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, the divergence made USDJPY reverse and start a new downtrend, which has already reached the retracement of 23.6%. The next downside targets may be the retracements of 38.2% and 50.0% at 106.58 and 106.20 respectively. The resistance level is the local high at 107.78.
The H1 chart shows more detailed structure of the current descending movement.
RoboForex Analytical Department