Fibonacci Retracements Analysis 30.10.2018 (EURUSD, USDJPY)

EURUSD, “Euro vs US Dollar”

As we can see in the H4 chart, after reaching the retracement of 76.0%, EURUSD is trading downwards towards the key support level at 1.1300. The resistance level is the high at 1.1621. At the same time, one can see the convergence, which may indicate a possible short-term pullback in the future.

In the H1 chart, the convergence made EURUSD reverse and start a new impulse to the upside, which has already reached the retracement of 23.6%. The next possible targets are the retracements of 38.2% and 50.0% at 1.1444 and 1.1478 respectively. However, if the price breaks the low at 1.1335, the instrument will resume moving downwards.

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, the convergence is making USDJPY complete the descending correction, which may later be followed by a new ascending impulse. If this impulse breaks the high at 114.55, the price may continue trading towards post-correctional extension area between the retracements of 138.2% and 161.8% at 115.73 and 116.51 respectively. However, in case the pair continues trading downwards, the next downside targets may be the retracements of 38.2% and 50.0% at 110.75 and 109.58 respectively.

In the H1 chart, the pair is being corrected upwards and has already almost reached the retracement of 50.0% at 112.56. The next possible upside targets are the retracements of 61.8% and 76.0% at 113.33 and 113.78 respectively.