Fibonacci Retracements Analysis 27.10.2020 (EURUSD, USDJPY)

EURUSD, “Euro vs US Dollar”

As we can see in the H4 chart, EURUSD continues forming the rising wave. The closest upside target may be the high at 1.2011, a breakout of which may result in further growth towards the long-term 76.0% fibo at 1.2094. However, more significant targets may be inside the post-correctional extension area between 138.2% and 161.8% fibo at 1.2163 and 1.2256 respectively. But there is an alternative scenario, which says the asset may break the fractal support at 1.1612 and then continue falling to reach 38.2% and 50.0% fibo at 1.1520 and 1.1368 respectively.

The H1 chart shows a new consolidation channel. After a divergence, the descending wave has tested 50.0% fibo at 1.1785. Considering the current consolidation range, there might be two equally possible scenarios implying either further growth and a breakout of the high at 1.1881 or a deeper correction to the downside. If the price chooses the first scenario, the instrument may reach 76.0% fibo at 1.1915. Otherwise, the asset may continue falling towards 61.8% and 76.0% fibo at 1.1762 and 1.1735 respectively. The key support is at 1.1688.

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, USDJPY is forming another descending wave towards the low at 104.00, a breakout of which may lead to further decline to reach the mid-term 76.0% fibo at 103.70. However, if the asset fails to break the low, the next rising impulse may be heading towards 38.2%, 50.0%, and 61.8% fibo at 106.23, 106.92, and 107.61 respectively.

The H1 chart shows that after falling and reaching 76.0% fibo, USDJPY has completed the pullback towards the resistance at 50.0% fibo at 105.06. if the pair rebounds from the resistance, the instrument may form one more descending impulse towards the low at 104.00.