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 selling zone and below its signal line. Earlier the growth pattern, a descending wedge, was broken upwards. It is not even a daily one, but a weekly one — this wedge is that large. After its upward breakout and rise there was a pullback down. And it initially reached the expected support level 1.1463. From it there was an attempt to rise, but instead of growth 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. The level was pushed through, basically a retracement to it for a test should be made since after the breakout a test has not yet occurred. An additional factor indicating a corrective rise to the level is the CCI indicator, where a bullish divergence is visible. And overall it is time for a correction, other pairs are also sitting at their peaks or lows, 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 retracement to the level and there already on smaller timeframes consider entering down. Perhaps the price will try to renew this year’s low, but most likely only through a retracement. An alternative scenario would be if the resistance level 1.1463 only gives a bounce down and is then broken upwards. 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 this is still the continuing effect from the Fed interest rate decision, which was raised for the first time in three years. After that was done 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 on Friday, often a day of correction if the week had moved in one direction.