EURUSD, “Euro vs US Dollar”
As we can see in the H4 chart, the convergence made EURUSD reverse and start a new correctional uptrend, which has already reached the retracement of 38.2%. The next possible upside targets may be the retracements of 50.0% and 61.8% at 1.1516 and 1.1586 respectively. The local support level is at 1.1357.
In the H1 chart, there is a divergence while EURUSD is still trading upwards. In this case, the price is expected to reach the retracement of 50.0% at 1.1516 and then start a new pullback. The possible targets are the retracements of 23.6%, 38.2%, 50.0%, and 61.8% at 1.1445, 1.1401, 1.1366, and 1.1330 respectively.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, USDJPY has failed to form a steady ascending impulse; the current movement may be considered as a new descending wave inside the mid-term correction. After breaking the local support at 111.37, the pair may continue falling to reach the retracements of 38.2% and 50.0% at 110.76 and 109.58 respectively. The resistance level is at 114.20.
In the H1 chart, there is a convergence while the pair is still trading downwards. Possibly, after reaching the local support at 112.20, the instrument may start a new pullback. The correctional targets may be the retracements of 23.6%, 38.2%, and 50.0% at 112.68, 112.97, and 113.21 respectively.
