FX.co ★ EUR/USD

Hello traders. The currency pair EURUSD. I suggest looking at the highest timeframe by months. Here you can see that not long ago there was a test of a clear descending line drawn through the peaks of waves, with a high probability of a decline from here since the line is very old and gently sloping. This bearish stance is supported by a bearish divergence on the CCI indicator. As it is known, divergence at a strong level or line is a very strong signal. Additionally, here you can see a complete growth cycle consisting of three waves. The first and third waves are approximately equal in size, which represents the cycle. Therefore, it seems unlikely to continue rising without a decline, at least towards 1.1400. Possibly even lower into the zone between 1.1158 and 1.1400. As we can already see some bounce off the line downwards, its continuation is expected. If there was no resistance at the line, the decline to the mentioned area would not be as promising, but it does exist, so for now, I think it's better to consider working on smaller timeframes downwards.

Let's consider the weekly period. Here, there are several signs indicating that in the near future, it's better to consider only downward work. Three peaks located close to each other, known as the three Indians, are clearly visible. On the MACD indicator used, there is a strong bearish divergence, a rather rare phenomenon for such a large timeframe. A reversal pattern can be drawn on the chart - a rising wedge within which the price currently resides. Also, the second indicator used, CCI, is ready to exit downwards from the overbought zone. Despite the horizontal support level at 1.1773, in my opinion, there are much more signs of downward pressure, and it is expected that this level will be successfully broken downwards soon, along with the breakout of the rising wedge pattern. Additionally, a hanging man candlestick was previously formed at the peak, which is another sign of a potential decline.