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 sell zone and below its signal line. Earlier the bullish pattern of a descending wedge was broken upward. It's not even a daily one, but weekly — the wedge is that large. After its upward breakout and rise a pullback down occurred. And it initially reached the expected support level 1.1463. There were attempts to rise from it, but instead an accumulation zone formed. Apparently far more buyers had accumulated, as a result 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 back to it to test it since there has not yet been a retest 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 would be time for a correction; other pairs are also sitting at their highs or lows, there are technical signals for a correction. The same divergence, for example, exists 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. The price may 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 upward. It would 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 maybe it's 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 moved down and even strong support in the form of 1.1463 could not stop the decline. I expect an upward correction. Especially since it's Friday, often a day of correction if the whole week went in one direction.