XAUUSD, “Gold vs US Dollar”
As we can see in the H4 chart, the divergence made XAUUSD reverse and start a new descending tendency. The downside targets are the retracements of 23.6%, 38.2%, 50.0%, and 61.8% at 1311.23, 1289.33, 1271.39, and 1253.75 respectively. The resistance level is the current high at 1346.68. If the price breaks it, the correction may continue towards 1375.15.
In the H1 chart, the pair is forming a short-term correction upwards. After that, the price may resume falling to reach retracement of 23.6% at 1311.23.
USDCHF, “US Dollar vs Swiss Franc”
As we can see in the H4 chart, after finishing a quick ascending impulse, the divergence made USDCHF start a new decline, which has stopped at the retracement of 38.2%. The next downside targets are the retracements of 50.0% and 61.8% at 0.9933 and 0.9881 respectively. The resistance level is the high at 1.0149.
In the H1 chart, the convergence made the pair start a new pullback, which has already reached the retracement of 38.2%. If the price breaks the low at 0.9981, the downtrend may continue towards the retracement of 50.0% at 0.9933.
