FX.co ★ berta.hill | EUR/USD

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