Japanese Candlesticks Analysis 19.07.2021 (EURUSD, USDJPY, EURGBP)

EURUSD, “Euro vs US Dollar”

As we can see in the H4 chart, the asset is moving sideways. After testing the resistance area, the pair has formed several reversal patterns, including Engulfing. At the moment, EURUSD may reverse and resume trading downwards. In this case, the downside target may be at 1.1717. However, an alternative scenario implies that the price may correct to reach 1.1880 before resuming the downtrend.

USDJPY, “US Dollar vs Japanese Yen”

As we can see in the H4 chart, USDJPY has formed several reversal patterns, such as Hammer, not far from the support area. At the moment, USDJPY is reversing and may start a new rising movement. In this case, the upside target may be the resistance level at 110.50. At the same time, an opposite scenario implies that the price may form another pullback towards 109.70 before resuming the ascending tendency.

EURGBP, “Euro vs Great Britain Pound”

As we can see in the H4 chart, after forming an Engulfing reversal pattern near the resistance area, EURGBP may reverse and start a new descending structure. In this case, the downside target may be at 0.8540. Later, the market may break the support level and continue its descending tendency. Still, there might be an alternative scenario, according to which the asset may correct towards 0.8610 first and then resume trading downwards.