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 the bullish pattern — a falling wedge — was broken to the upside. It's not even a daily one, but a weekly one — this wedge is that big. After it was broken upward and rose, there was a pullback downward. And it initially retraced down to the expected support level 1.1463. There was an attempt to rise from it, but instead of rising a consolidation zone formed. Apparently far more buyers had accumulated, as a result the price was pulled sharply down. And overall in the market the US dollar was strengthening. The level was pushed through; in fact there should be a retracement back to test it because there hasn't been a test after the breakout yet. An additional factor indicating a corrective rise 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. The same divergence, for example, exists in places on 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 then consider an entry down on smaller timeframes.Possibly the price will try to update this year's low, but most likely only through a retracement. The alternative scenario is if the resistance level 1.1463 only causes 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 perhaps this is still an effect continuing from the Fed's interest rate decision, which they raised for the first time in three years. After they did that the price flowed downward and even strong support in the form of 1.1463 could not stop the decline. I expect an upward correction that is clearly overdue.

And on the four-hour chart it is clearer that so far the price has not been allowed to rise further than it did at the end of last week. This is a steep sloping resistance line. Lines like that don't hold for long and this one will soon be broken by a wave of upward movement.