On Monday, I suggest analyzing the D1 chart of the currency pair EURUSD. Another trading week has ended, and the wave structure continues to develop downwards. The MACD indicator is in the oversold zone. A wave formation called the third within the third has formed, meaning the third wave is the minor wave within the third wave of a larger degree. Applying a Fibonacci retracement to the higher first wave reveals a potential downside target at the 161.8 level. Before reaching that, there is a typical technical low at 1.0453. It is advisable to close sell positions before reaching this level. During a recent corrective uptrend, the price retraced to the horizontal resistance level at 1.0741, successfully tested it, and then dropped. Currently, the price seems to be in a tight range. The horizontal resistance level at 1.0741 mentioned earlier is acting as a barrier from above, causing the price to bounce downwards. Below, there is a strong support level at 1.0675, which has turned from resistance to support at the edge of the decline. Selling from the 1.0741 level on Friday was reasonable, as there was a confirmed downward movement on the M5 timeframe within the day. It was also a mirror level, and the price dropped. However, it is now too late to sell as the support level is very close. Considering the entire descending wave scenario described earlier is only possible if the support level at 1.0675 is successfully broken downwards, at least on the four-hour chart. The best entry point would be if the price retests this broken level from below as resistance. An alternative scenario is a rise from the current levels and a breakout at 1.0741, which could lead to further growth towards the descending trendline above. The spike in price drawn on the chart is not significant; it does not exist in reality. I have verified this with several other brokers.
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