Fibonacci analysis for EURUSD and USDJPY at 29.10.2019
The 4-hour timeframe of the EURUSD pair shows that after reaching the level of 50.0% Fibonacci from the last growth wave the quotes entered the pullback phase. The local support rate of 23.6% (1,1005) can be considered as its target. After the end of the corrective recession, the next growth wave will be directed to the levels of 61.8% (1,1208) and 76.0% (1,1248). However, it is also worth noting the long-term level of correction of 23.6% (1,1275). Its achievement will be a kind of confirmation of the hypothesis of a reversal of the long-term trend.
On the 1-hour EURUSD timeframe we can see a more detailed picture of the development of a downward correction after a short-term divergence. Quotes are approaching 38.2% Fibonacci (1.1064), and the next target will be 50.0% (1.1029). With the development of downward movement on the indicator, the formation of convergence is observed. Resistance is at a maximum of 1,1179.
On the 4-hour timeframe of the USDJPY pair we can see that the quotes have finished the last correction near the level of 23.6% Fibonacci. Having overcome the last maximum, the pair tries to gain a foothold over it in order to continue the ascending trend. Further growth targets are in the range of post-correction expansion of 138.2-161.8% (109.23-109-70), which also has a mid-term Fibonacci level of 61.8% (109.37). Core support remains at 106.48.
On the 1-hour chart, the dynamics of USDJPY shows a slowdown after overcoming the peak. Quotes are aimed at the lower limit of the post-correction expansion range of 138.2-161.8% Fibonacci (109.23-109-70).
Forecasts of financial markets are the private opinion of their authors. The current analysis does not represent a guide to trading. RoboForex is not responsible for the results of the work that may arise when using trading recommendations from the reviews provided.