FX.co ★ berta.hill | EUR/USD

Chart D1 - pair EURUSD. The wave structure still formally favors an upward order, although in essence it is already neutral. The MACD indicator is in the lower sell zone and below its signal line. Earlier the bullish pattern — a descending wedge — was broken to the upside. It's not even a daily one but weekly; the wedge is that big. After its upward breakout and rise there was a pullback down. And initially it pulled back to the expected support level 1.1463. There was an attempt to rise from it, but instead of growth an accumulation zone formed. Apparently a lot more buyers had accumulated, resulting in the price being dragged sharply down. And overall in the market the US dollar was strengthening. The level was pushed through; essentially a pullback to test it should be made 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 in general it's high time for a correction; other pairs are also standing at their peaks or troughs, and there are technical signals for a correction. The same divergence, for example, is present in some 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 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 this was still the effect of 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 couldn't stop the decline. The level was broken and the price plunged like a stone, making a new yearly low. And so far there are no signs of a rise. That happens too; it's called a steamroller — it periodically happens and flattens everyone who is uninsured. 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 you can see, based on the signal the price has already started to be pulled up quite well from the lows; the clear target is 1.1353. So far the 23.6 level on the Fibonacci grid has been reached.