EURUSD → Fundamental and TA diverge. What's next?

7 Jul 2023

EURUSD has been declining all week. The correction continues to the lower boundary of the uptrend, and after a false breakdown of support the market responds with a bullish reaction.



The daily timeframe is turning a triple top, but everything is ambiguous. Price is in a global fleet.
Within a local uptrend, a false break of channel support increases liquidity and the market builds bullish volumes, against the news this reaction may be temporary.
If the wedge resistance is broken, a consolidation above the line can be formed, followed by an impulse towards the key resistance.
The Fed is not going to give up and is increasingly saying that rates will either be kept or increased in the medium term, in which case the currency pair may show us a bearish mood.

Support levels: 1.08485
Resistance levels: the upper boundary of the wedge, 1.0945, 1.1000
I expect an attempt to break through the resistance of the wedge. If it succeeds, the price may head towards 1.0945 within the channel. But if the consolidation in the wedge continues, there will be a chance to break through the trend support.

Regards R. Linda!