FX.co ★ berta.hill | EUR/USD

Chart D1 - pair EURUSD. The wave structure formally still builds its order upwards, although in essence it is already neutral. The MACD indicator is in the lower oversold zone and below its signal line. Earlier a bullish 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 it was broken to the upside and the subsequent rise, a pullback down occurred. And initially it pulled back to the expected support level of 1.1463. There was an attempt to rise from it; instead of rising, a consolidation zone formed. Apparently many more buyers accumulated, as a result the price was strongly dragged down. And overall in the market the US dollar was strengthening. They pushed through the level; essentially a pullback to it for its retest should be made since there has not been a retest after the breakout. An additional factor indicating a corrective rise back to the level is the CCI indicator, which shows a bullish divergence. And in general it's time for a correction; other pairs are also standing at their peaks or lows, there are technical signals for a correction there. The same divergence, for example, exists in some places on the four-hour charts. There's no point selling at the bottom of the move; you still need to wait for a pullback to the level and then consider entering short on smaller timeframes. Apparently some fundamental factors influenced the strengthening of the US dollar. Although maybe it was still an effect from the Fed's interest rate decision, which they raised for the first time in three years. After they did that, the price flowed down and even the strong support at 1.1463 couldn't stop the decline. They broke the level and the price fell like a stone, updating the year's low. And so far there are no signs of an uptrend. It happens; this is called a steamroller, it happens periodically and flattens everyone who ends up without protection. In my opinion, a corrective rise at least to the horizontal resistance level would have looked quite good. After another collapse last week, the same bullish divergence on the CCI only increased. And as you can see, the signal, they have already started to pull the price up from the lows quite well, the clear target is 1.1353. So far the 23.6 level on the Fibonacci grid has been reached.