- EUR/USD is teasing a descending triangle breakdown on the hourly chart.
- A breakdown, if confirmed, could yield a test of the psychological support of 1.08.
EUR/USD's hourly chart shows the pair is looking to dive out of a four-day long consolidation pattern.
The pair has been restricted to a descending triangle since Feb. 13. The triangle is marked by trendlines connecting lower highs and a support line.
At press time, the pair is trading just below the lower end of the triangle at 1.0830. An hourly candle close below that level would confirm a descending triangle breakdown and signal a continuation of the sell-off from the Jan. 31 high of 1.1095.
The hourly chart RSI is hovering just below 50, supporting the case for a deeper drop.
That said, the daily chart RSI is reporting oversold conditions with a below-30 print. The downside, therefore, could be limited around 1.08.
On the higher side, resistance is seen at 1.0839 (50-hour MA), which if violated, would open the doors to 1.0889 (hourly chart hurdle).
Hourly chart
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Trend: Bearish
Technical levels
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