Japanese Candlesticks Analysis 07.08.2019 (EURUSD, USDJPY)

EURUSD, “Euro vs. US Dollar”

As we can see in the H4 chart, EURUSD is testing the descending channel’s upside border and forming several reversal patterns, including Engulfing. At the moment, we may assume that despite the fundamental background the price may reverse and fall towards 1.1112 to continue forming the descending channel. However, one shouldn’t exclude a possibility that the price may break the resistance level and continue growing towards 1.1276.

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, the ascending tendency continues. After breaking the channel’s downside border and forming Hammer reversal pattern close to the support level, USDJPY has completed a slight pullback. Right now, the pair is testing the level again. Judging by the previous movements, it may be assumed that after testing the horizontal support line the price may resume trading upwards to reach 107.25. However, we shouldn’t ignore a possibility that the instrument may break the support line, update the low at 105.51, and continue its decline.