FX.co ★ berta.hill | EUR/USD

Hello traders, let's analyze the daily chart of the EURUSD currency pair. Just like before, the wave structure is forming an upward pattern, with the MACD indicator in the overbought zone. There is a bearish divergence on the MACD indicator being used, and it is quite significant. Part of it has already played out, as the price confidently started to decline since the beginning of July and reached the first expected target, the horizontal support level at 1.1594. This level also coincided with an ascending trendline drawn from the wave lows. It was clear that breaking through this double obstacle to the downside would be challenging, so a rebound upwards was expected. The rebound occurred and even transitioned into a full-fledged uptrend on lower timeframes. At that time, the CCI indicator warned of an increased likelihood of growth from the supports, as it was ready to exit the oversold zone. Additionally, there was a bullish convergence on it - a signal for growth. The combination of signals confirmed that the priority was on the rise, which indeed happened. The price almost reached its maximum, but whether it will surpass it is now questionable. It could be the second wave before the third one down, which might end there. I believe the divergence is still valid and has not played out yet, as the MACD indicator did not approach the discharge zone, i.e., the zero mark. I think on lower timeframes, we can consider a downward movement. Even if the price surpasses the peak again, the divergence will only increase, leading to a new attempt at a decline. However, there may not be a breakout above the maximum. I expect a repeated descent and a test of the ascending trendline, followed by the support level at 1.1594. I assume that these obstacles will be overcome, and the correction target will be the level at 1.1451. If we apply a Fibonacci retracement grid to the entire growth of this year, it is evident that the 23.6% level almost coincides with the usual technical level of 1.1451. I anticipate that the price will aim for that level in the near future.