Japanese Candlesticks Analysis 18.08.2020 (EURUSD, USDJPY, EURGBP)

EURUSD, “Euro vs. US Dollar”

As we can see in the H4 chart, the uptrend continues. By now, after forming a Hanging Man pattern not far from the resistance level, EURUSD is expected to start reversing. Considering the current bullish dynamics, the price may form a slight pullback towards the rising channel’s downside border and then resume trading upwards to reach the next resistance level at 1.1970. At the same time, an alternative scenario implies that the instrument may continue falling to return to 1.1830.

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, USDJPY is moving towards the support level. The current situation implies that after rebounding from the level the market may resume trading upwards to reach the next resistance area at 106.75. Still, there is an opposite scenario, which says that the instrument may break the support level and continue falling towards 105.25.

EURGBP, “Euro vs. Great Britain Pound”

As we can see in the H4 chart, the pair is still moving inside the rising channel. By now, after finishing several reversal patterns, including Doji, EURGBP has started reversing. The correctional target is at 0.9000. Later, the price may resume moving upwards. However, there might be another scenario, according to which the asset may grow towards 0.9100 without reversing.