FX.co ★ berta.hill | EUR/USD

D1 chart - pair EURUSD. The wave structure formally still builds its order upward, although in essence it is already neutral. The MACD indicator is in the lower, oversold area and below its signal line. Earlier a bullish pattern, a descending wedge, was broken to the upside. It was not even a daily one, but a weekly one — the wedge is that large. After its upside breakout and rise a pullback downward occurred. And initially it pulled back to the expected support level of 1.1463. There was an attempt to rise from it, but instead an accumulation zone formed. Apparently far more buyers had accumulated, as a result the price was heavily driven down. And overall across the market the US dollar was strengthening. The level was pushed through; essentially there should be a pullback to test it since the breakout hasn't been tested yet. An additional factor indicating a corrective rise toward the level is the CCI indicator — a bullish divergence is visible on it. And in general 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 4-hour charts. There's 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 lower timeframes. The price may attempt to update this year's low, but most likely only via a pullback. An alternative scenario would be if the resistance level 1.1463 only provides 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 maybe this is still the lingering effect of 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 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.