EURUSD, “Euro vs US Dollar”
As we can see in the H4 chart, EURUSD has broken the local high and right now is trading towards the long-term high at 1.2555, which is inside the post-correctional extension area between the retracements of 138.2% and 161.8% at 1.2524 and 1.2574 respectively. The support level is at 1.2239.
In the H1 chart, the divergence is being formed, which may indicates a possible short-term pullback soon. The target of this pullback may be the retracements of 38.2% and 50.0% at 1.2403 and 1.2381 respectively.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, after breaking the low, USDJPY is still falling towards the post-correctional extension area between the retracements of 138.2% and 161.8% at 104.47 and 103.98 respectively. Taking into account the convergence that is being formed, one may expect a new correction soon. The possible targets are the retracements of 23.6%, 38.2%, and 50.0% at 106.79, 108.10, and 109.18 respectively.
In the H1 chart, the pair is moving upwards and has already reached the retracement of 50.0%. The next targets are the retracements of 61.8% and 76.05 at 105.86 and 106.15 respectively.
RoboForex Analytical Department