EUR/USD Price Analysis: Fake triangle breakout drags Eurozone bulls to near 1.0200
- A less-confident break of Descending Triangle has weakened the shared currency bulls.
- The pair has surrendered the 20-EMA support at 1.0210.
- Momentum oscillator RSI (14) has shifted back inside the woods.
The EUR/USD pair is hovering around Tuesday’s low at 1.0203 and is likely to display a steep fall on its violation. The asset is declining swiftly after facing barricades above 1.0240 and has shifted into bearish territory. In the early Tokyo session, the major has given a downside break of the 1.0209-1.0215 range.
On an hourly scale, the EUR/USD pair has displayed a steep fall after delivering a less-confident break of the Descending Triangle chart pattern. The downward sloping trendline of the aforementioned chart pattern is placed from the August 2 high at 1.0294 while the horizontal support is plotted from July 28 low at 1.0137.
The shared currency bulls have surrendered the 20-period Exponential Moving Average (EMA) support of 1.0210. While, the 200-EMA has turned flat around 1.0200, which indicates a consolidation ahead.
Also, the Relative Strength Index (RSI) (14) has shifted back to the 40.00-60.00 range and seeks a potential trigger ahead.
The greenback bulls could strengthen the downside bias if the asset drops below July 27 low at 1.0097, which will drag the asset towards July 14 high at 1.0050. A breach of the latter will unleash the greenback bulls for more downside towards July 14 low at 0.9952.
Alternatively, a decisive move above Thursday’s high at 1.0254 will drive the asset towards the August 2 high at 1.0294, followed by June 15 low at 1.0359.
EUR/USD hourly chart
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Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
