EURUSD, “Euro vs US Dollar”
As we can see in the H4 chart, the convergence made EURUSD start a new rising impulse, which reached 50.0% fibo and was later followed by a pullback. After completing this pullback, the pair may continue growing towards 61.8% and 76.0% fibo at 1.1174 and 1.1202 respectively. The key target of this rising impulse will be the high at 1.1250. However, we shouldn’t ignore a possibility that the instrument may yet break the local low at 1.1051. In this case, the price may continue falling towards the support at 1.1027 and the post-correctional extension area between 138.2% and 161.8% fibo at 1.0942 and 1.0889 respectively.
The H1 chart shows more detailed structure of the current pullback. EURUSD slowed down at 61.8% fibo, but may yet continue falling towards 76.0% fibo at 1.1078. The resistance is the local high at 1.1164.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, after testing the long-term low at 104.51, USDJPY started a new correction due to the convergence and has already reached 38.2% fibo. In the future, the correction may continue towards 50.0% and 61.8% fibo at 106.88 and 107.45 respectively. The support is at 104.45.
In the H1 chart, USDJPY is correcting downwards after completing the rising wave. The pair has already reached 38.2% fibo and may continue falling towards 50.0% and 61.8% fibo at 105.43 and 105.20 respectively. If the price breaks the high at 106.41, the instrument may resume trading upwards.
