EURUSD, “Euro vs US Dollar”
As we can see in the H4 chart, the correctional downtrend is slowing down. By now, EURUSD has reached 61.8% fibo. The next downside targets may be 76.0% fibo at 1.0966 and the low at 1.0879. However, the current situation suggests that a possibility of reaching the low is very unlikely.
In the H1 chart, there is a convergence on MACD, which indicates a possible pullback. The targets may be 23.6, 38.2%, and 50.0% fibo at 1.1048, 1.1072, and 1.1091 respectively. The support is the local low at 1.1009.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the daily chart, the divergence made USDJPY finish its lengthy growth and start a new pullback to the downside, which has already reached 23.6% fibo. At the moment, the pair is moving towards the long-term support, which is at 50.0% fibo (108.43). If the price breaks this level, it may reverse. The next downside targets may be 38.2% and 50.0% fibo at 108.06 and 107.37 respectively. the resistance is the high at 110.29.
The H1 chart shows more detailed structure of the current pullback after the convergence. Right now, the price is trading sideways close to 23.6% fibo and may later break this channel to the upside. In this case, the pair reach 38.2% and 50.0% fibo at 109.30 and 108.48 respectively. The support is the low at 108.73.
