Japanese Candlesticks Analysis 02.08.2019 (EURUSD, USDJPY)

EURUSD, “Euro vs. US Dollar”

As we can see in the H4 chart, EURUSD is testing the descending channel’s downside border and forming several reversal patterns, including Engulfing. At the moment, we may assume that despite the fundamental background the price may grow towards 1.1180 to continue forming the descending channel. However, one shouldn’t exclude a possibility that the price may break the support level and continue falling towards 1.0999.

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, the ascending tendency continues. USDJPY has broken the channel’s downside border and formed Hammer reversal pattern close to the support. Right now, the pair is reversing. Judging by the previous movements, it may be assumed that after testing the horizontal support line the price may resume trading upwards to reach 108.00. However, we shouldn’t ignore a possibility that the instrument may complete the correction, break the support line, update the low at 106.84, and continue its decline.