EURUSD, “Euro vs US Dollar”
As we can see in the H4 chart, divergence on MACD made the asset complete the rising impulse and resume its local correction. The most probable scenario implies that the pair may finish the correction soon above the low at 1.1120 and then continue growing to break the next high and reach 38.2% fibo at 1.1590. At the same time, if the price breaks the support, it may fall towards the long-term 76.0% at 1.1047.
The H1 chart shows a more detailed structure of the current descending correction, which has already tested 50.0% fibo twice and may later be heading towards 61.8% and 76.0% fibo at 1.1263 and 1.1210 respectively. A breakout of the resistance at 1.1495 will lead to a further mid-term uptrend.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, the situation hasn’t changed much since last Tuesday. After rebounding from the high at 116.35, USDJPY is forming a new descending wave within the mid-term correctional phase. The closest downside target is the low at 113.47, the next one is the mid-term 23.6% fibo at 113.09. An alternative scenario implies a new growth to reach the post-correctional extension area between 138.2% and 161.8% fibo at 117.46 and 118.13 respectively but it’s highly unlikely.
In the H1 chart, the pair is falling towards 61.8% fibo and may later reach 76.0% fibo at 114.16, a breakout of which may lead to a further downtrend towards the low at 113.47. At the same time, there is local divergence on MACD, which may hint at a a possible short-term pullback. The resistance remains at the high at 116.35.
