Fibonacci Retracements Analysis 06.07.2021 (EURUSD, USDJPY)

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

As we can see in the H4 chart, the asset is starting a new rising movement after convergence on MACD; the previous decline has reached 76.0% fibo. At the same time, this convergence may force the asset to form not just a pullback but a proper ascending wave towards the short/long-term highs at 1.2266 and 1.2350 respectively. However, if the price completes the pullback without updating the high, the instrument may fall to break the mid-term 76.0% fibo at 1.1704 and then continue moving towards the long-term 50.0% fibo at 1.1695.

The H1 chart shows potential correctional targets after convergence. At the moment, the pair is approaching 23.6% fibo at 1.1916 and may later continue moving towards 38.2%, 50.0%, and 61.8% fibo at 1.1982, 1.2036, and 1.2090 respectively. A breakout of the local low and the support at 1.1807 will complete the pullback and lead to a further decline.

USDJPY, “US Dollar vs. Japanese Yen”

In the H4 chart, a test of the previous fractal high at 111.71 has been followed by divergence on MACD, and now the pair is starting to fall. In general, this movement may be considered as a descending correction. The targets are 23.6%, 38.2%, and 50.0% fibo at 109.52, 108.20, and 107.13 respectively. The local resistance is at 111.66.

The H1 chart shows a correctional decline after the previous rising impulse. At the moment, the asset is approaching 76.0% fibo at 110.72 and may later continue falling towards the local low at 110.42, a breakout of which may lead to a further downtrend to reach the post-correctional extension area between 138.2% and 161.8% fibo at 109.95 and 109.65 respectively.

Article By RoboForex.com

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