XAUUSD, “Gold vs US Dollar”
As we can see in the H4 chart, the previous wave to the downside has tested the long-term retracement of 50.0% again and rebounded from it. In this case, XAUUSD may start a new mid-term correctional uptrend or a short-term one towards the retracements of 50.0% and 61.8% at 1306.55 and 1315.81 respectively. After breaking the low at 1266.23, the instrument may continue falling towards the mid-term retracement of 61.8% at 1253.95.
In the H1 chart, the convergence made the pair start a new rising correction, which has already reached the retracement of 50.0%. The next upside targets are the retracements of 61.8% and 76.0% at 1290.50 and 1295.20 respectively. The key support level is the low at 1269.52.
USDCHF, “US Dollar vs Swiss Franc”
In case of the USDCHF, the big picture may indicate both the completion of the mid-term correction and the start of a new long-term decline. As we can see in the H4 chart, the pair both reached the mid-term retracement of 61.8% and got closer to the long-term retracement of 23.6% at 0.9988. In the future, the price may yet fall towards the retracement of 76.0% at 0.9976. At the same time, there is a convergence on MACD, which may indicate a possible short-term pullback. The local resistance level is the retracement of 38.2% at 1.0106.
In the H1 chart, the convergence made the pair start a new short-term rising correction. The upside targets may be the retracements of 23.6%, 38.2%, and 50.0% at 1.0035, 1.051, and 1.0064 respectively. The local support is the low at 1.0008.
