XAUUSD, “Gold vs US Dollar”
As we can see in the H4 chart, after completing the previous descending correction at the retracement of 50.0%, XAUUSD started a new ascending impulse to reach the high at 1326.23. However, if the price fails to break the high and starts a new impulse to the downside, the correction may continue towards the retracement of 61.8% at 1295.65. Nevertheless, the current rising impulse is looking pretty stable, that’s why the scenario which impulse breakout of the high is more favorable. After breaking the high, the instrument may continue growing towards the post-correctional extension area between the retracements of 138.2% and 161.8% at 1335.30 and 1340.90 respectively.
In the H1 chart, the pair got very close to the high. In the short-term, the price may be corrected towards the local support at the retracement of 50.0% at 1314.20 and then start a new impulse to the upside.
USDCHF, “US Dollar vs Swiss Franc”
As we can see in the H4 chart, after finishing a quick descending impulse, USDCHF tried to form a new one to the upside, but this movement stopped at the retracement of 23.6%. Due to the divergence on MACD, the instrument may form another descending wave towards the retracements of 38.2%, 50.0%, and 61.8% at 0.9984, 0.9933, and 0.9881 respectively. The resistance level is the high at 1.0149.
In the H1 chart, the divergence made the pair start a new pullback, which has already reached the retracement of 50.0%. In the future, the downtrend may continue towards the retracement of 61.8% at 1.0020.
