FX.co ★ berta.hill | EUR/USD

Chart D1 - pair EURUSD. The wave structure formally still points upward, although in essence it is already neutral. The MACD indicator is in the lower oversold zone and below its signal line. Earlier the falling wedge growth pattern was broken to the upside. It's not even a daily one, but a weekly one — this wedge is that large. After its breakout upward and the rise there was a pullback downward. Initially it reached the expected support level 1.1463. There was an attempt to rise from it, but instead a consolidation zone formed. Apparently many more buyers had accumulated, as a result the price was heavily dragged down. And overall in the market the US dollar was strengthening. They pushed the level through; essentially there should be a retracement to test it since there hasn't been a test after the breakout yet. An additional factor indicating a corrective rise to the level is the CCI indicator — a bullish divergence is visible on it. And generally it would be 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, can be found 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 entries to the downside on smaller timeframes. Apparently some fundamental factors influenced the strengthening of the US dollar. Although maybe this is still an effect continuing from the Fed's interest rate decision which was raised for the first time in three years. After they did that the price flowed down and even the strong support at 1.1463 could not stop the decline. They broke the level and the price plunged down, renewing the year's low. And so far there are no signs of a rally. This happens too; it's called a steamroller — it periodically happens and flattens everyone who was without protection. In my opinion a corrective rise at least to the horizontal resistance level would look quite good. After the latest collapse last week the same bullish divergence on the CCI only increased. And as can be seen, they have already begun to pull the price up quite well from the lows; a clear target is 1.1353. So far the 23.6 level on the Fibonacci grid has been reached.