Fibonacci Retracements Analysis 21.05.2019 (EURUSD, USDJPY)

EURUSD, “Euro vs US Dollar”

As we can see in the H4 chart, after testing the retracement of 38.2% once again, EURUSD has formed the descending wave. As a result, we may assume that the pair is trading sideways. If the price breaks the channel’s downside border and the low at 1.1110, the instrument may continue falling to update its multiyear lows. However, if the sideways movement continues, the pair may reach the retracements of 50.0% and 61.8% at 1.1279 and 1.1319 respectively.

In the H1 chart, the short-term downtrend towards the low at 1.1110 continues. At the same time, there is a convergence on MACD, which may indicate a new correction. The possible targets of this pullback may be the retracements of 38.2% and 50.0% at 1.1168 and 1.1186 respectively.

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, USDJPY is being corrected upwards and has already reached the retracement of 38.2%. The next targets of this pullback may be the retracement of 50.0% at 110.71. After finishing the pullback, the instrument may resume falling to break the low at 109.02 and reach the mid-term retracement of 50.0% at 108.46.

In the H1 chart, the price is testing the retracement of 38.2%. Possibly, the pair may rebound and return to the retracements of 23.6%. After finishing the pullback, the instrument may start a short rising wave.