FX.co ★ berta.hill | EUR/USD

Chart D1 - pair EURUSD. The wave structure still formally builds its order upward, although in essence it's already neutral. The MACD indicator is in the lower oversold area and below its signal line. Earlier a growth pattern, a descending wedge, was broken to the upside. It's not even a daily one, but a weekly one — this wedge is that large. After its breakout to the upside and the rise, a pullback downward occurred. And it initially retraced to the expected support level 1.1463. From it there was an attempt to grow, but instead of growth a consolidation zone formed. Apparently many more buyers had accumulated, as a result the price was dragged sharply downward. And overall the US dollar was strengthening across the market. The level was pushed through; essentially a retracement to it for a test should be made since there has not yet been a test after the breakout. An additional factor indicating a corrective rise to the level is the CCI indicator, which shows a bullish divergence. And in general it's about time for a correction; other pairs are also standing at their highs or lows, there are technical signals for a correction. The same divergence, for example, is present in places on the four-hour charts. There is no point in selling at the bottom of the move; you still need to wait for a retracement to the level and then consider a short entry on smaller timeframes. The price may try to update this year's low, but most likely only through a retracement. An alternative scenario will be if the resistance level 1.1463 only gives a bounce down and is broken up. It would then change its status from resistance to support. In that case the price is likely to reach the next level 1.1573. Apparently some fundamental factors influenced the strengthening of the US dollar. Although maybe this was still an effect continuing from the Fed interest rate decision, which they raised for the first time in three years. After they did that the price flowed downward and even the strong support at 1.1463 could not stop the decline. I expect an upward correction. Especially Friday, often a day of correction if during the week it moved one way.