FX.co ★ 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 descending wedge, was broken to the upside. It's not even a daily one but a weekly one; this wedge is that large. After its breakout to the upside and the subsequent rise, there was a pullback down. Initially it pulled back to the expected support level 1.1463. There was an attempt to grow from it; instead of growth an accumulation zone formed. Apparently many more buyers had 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; essentially there should be a retracement back to it to test it since there hasn't been a test after the breakout. An additional factor indicating a corrective rise to the level is the CCI indicator; a bullish divergence is visible on it. And generally it's about time for a correction; other pairs are also standing at their peaks or lows, and there are technical signals for a correction there. The same divergence, for example, exists in some places on the 4-hour charts. There is no point in selling at the bottom of the move; you still have to wait for a retracement to the level and only then consider an entry down on smaller timeframes. The price may try to update this year's low, but most likely only through a retracement. The alternative scenario would be in case the resistance level 1.1463 only gives a rebound 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 it's still the continuing effect from 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 which is clearly overdue.

And on the 4-hour chart it is clearer that so far something hasn't allowed the price to rise further than it managed 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 growth.