FX.co ★ EUR/USD

D1 chart - EURUSD pair. The wave structure is formally still building upward, although in essence it's already neutral. The MACD indicator is in the lower selling zone and below its signal line. Previously the bullish pattern, a descending wedge, was broken to the upside. It's not even a daily one, but a weekly one; this wedge is that big. After its upward breakout and rise there was a pullback down. And initially it reached the anticipated support level of 1.1463. There was an attempt to rise from it, but instead a consolidation zone formed. Apparently far more buyers had accumulated, as a result the price was heavily dragged down. And overall in the market the US dollar strengthened. The level was pushed through; essentially a pullback to test it is needed since there hasn't been a test after the breakout. An additional factor indicating a corrective rise to the level is the CCI indicator, which shows a bullish divergence. And generally it's about 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 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 look for an entry down on smaller timeframes. The price might seek to renew this year's low, but most likely only via a pullback. The alternative scenario would be if the resistance level 1.1463 only causes a bounce down and is then broken to the upside. 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 effect continuing from the Fed's 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 since it's Friday, often a day of correction if the price has gone one way all week.