Fibonacci Retracements Analysis 31.08.2021 (EURUSD, USDJPY)
EURUSD, “Euro vs US Dollar”
As we can see in the H4 chart, EURUSD is moving upwards. This growth may be considered as a correction after a decline towards the mid-term 38.2% fibo but convergence on MACD was also a factor here. By now, the asset has reached 23.6% fibo and may later continue towards 38.2% and 50.0% fibo at 1.1894 and 1.1956 respectively. After that, the instrument is expected to reverse and form a new descending wave to reach the current support, which is the low at 1.1664.
The H1 chart shows local divergence on MACD, which may indicate a possible correctional downtrend after the asset completes the current rising wave. In this case, the correctional targets may be 23.6%, 38.2%, and 50.0% fibo at 1.1787, 1.1763, and 1.1745 respectively. The resistance is the high at 1.1825.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, the asset is consolidating around 23.6% fibo. Possibly, the pair may break this range to the downside and start a new wave to the downside towards 38.2% and 50.0% fibo at 108.20 and 107.13 respectively. The resistance is still the high at 111.66.
The H1 chart shows that the price is stuck between 110.80 and 108.72. After falling and reaching 76.0% fibo, the asset has returned to 23.6% fibo. At the moment, the instrument is falling again and trying to break 50.0% fibo, thus attempting to reach the downside border of the current range.
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