Analyzing the H4 chart two days ago, I expected declines after the confluence of events by PA + MACD strategy – that is, the creation of a declining candle was accompanied by the creation of a maximum on the MACD oscillator. The forecast was accurate and today we witnessed quite sharp declines on this pair.
It is difficult to ascertain how much of the downturn was affected by the technical situation on the chart, and how much Trump’s contribution was to them saying in the evening that he did not like the FED’s plans to further increase interest rates, but declines became a fact. So, without losing faith in Technical Analysis, let’s look at the daily chart today.
Today’s daily candle has covered with its entire range three previous drawing a Outside Bar formation . MACD created the maximum and starts to decrease, and a divergence was created between it and the price.
The situation is similar to the one from two days ago with the difference that that was happening on the H4 chart, and the current one is on the daily chart. The scenario of the continuation of declines is very likely, but let us remember that the pair is in a strong long-term uptrend and these are only corrective movements. The level of 113.70 still wasn’t reached, which seems to be the target of bulls.