EURUSD, “Euro vs. US Dollar”
In the H4 chart, EURUSD has been trading sideways between the 5/8 and 0/8 levels since April 23rd. Right now, it is going to re-test the latter level. This time, the level may be broken and then price will continue falling to reach the support at the -1/8 one. Another thing to confirm this decline is the fact that today is Friday, and the USD usually got stronger against other currencies on Fridays during this year. However, this scenario may no longer be valid if the price breaks the 2/8 level. In this case, the instrument may resume moving upwards to reach the resistance at the 5/8 level.
As we can see in the M15 chart, the pair has broken the downside line of the VoltyChannel indicator and, as a result, may trade downwards.
GBPUSD, “Great Britain Pound vs US Dollar”
As we can see in the H4 chart, bears are preventing bulls from pushing GBPUSD past the 0/8 level and later reaching the resistance at the 3/8 one. As a result, right now the price is trading close to the -2/8 level. However, bulls still have chances to take over the instrument. In this case, they must make the pair break the -1/8 level and then break the 0/8 one. In this case, the upside target will be the resistance at the 3/8 level. Still, it’s Friday and the USD usually gets stronger against other currencies on Fridays, that’s why bulls’ chances are not too high. So, the main scenario for today implies further decline. To define possible targets, we should wait until the pair breaks the -2/8 level and redraws the lines. Only after that, we may see updated resistance and support lines. Also, it won’t hurt to analyze the H1 chart, which may be very helpful.
In the H1 chart, the pair is trading close to the 1/8 level. If the price breaks it, the instrument may continue falling to reach its first target, which is the support at the -1/8 one.
