Japanese Candlesticks Analysis 06.07.2021 (EURUSD, USDJPY, EURGBP)

EURUSD, “Euro vs US Dollar”

As we can see in the H4 chart, the correction continues. After testing the support area, the pair has formed several reversal patterns, including Hammer and Doji. At the moment, EURUSD may reverse and start a new pullback towards the resistance level. In this case, the correctional target may be at 1.1895. However, an alternative scenario implies that the price may fall to reach 1.1800 and continue the downtrend without any corrections.

USDJPY, “US Dollar vs Japanese Yen”

As we can see in the H4 chart, USDJPY has formed several reversal patterns, such as Harami and Shooting Star, not far from the resistance area. At the moment, USDJPY may reverse and start a new pullback to the downside. In this case, the correctional target may be the support level at 110.60. At the same time, an opposite scenario implies that the price may continue growing towards 111.50 without testing the support level.

EURGBP, “Euro vs Great Britain Pound”

As we can see in the H4 chart, after forming several reversal patterns, such as Hammer, near the support area, EURGBP may reverse and correct to reach the resistance level. In this case, the upside target may be at 0.8575. Later, the market may rebound from this level and resume the descending tendency. Still, there might be an alternative scenario, according to which the asset may fall towards 0.8530 without reversing and correcting.