EUR/USD Price Analysis: Teases a descending triangle breakdown on 1H

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.

Omkar Godbole FXStreet Contributor

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

Trend: Bearish

Technical levels

EUR/USD

Overview
Today last price	1.083
Today Daily Change	-0.0004
Today Daily Change %	-0.04
Today daily open	1.0834

Trends
Daily SMA20	1.0984
Daily SMA50	1.1075
Daily SMA100	1.1065
Daily SMA200	1.1113

Levels
Previous Daily High	1.0851
Previous Daily Low	1.0829
Previous Weekly High	1.0958
Previous Weekly Low	1.0827
Previous Monthly High	1.1225
Previous Monthly Low	1.0992
Daily Fibonacci 38.2%	1.0843
Daily Fibonacci 61.8%	1.0838
Daily Pivot Point S1	1.0825
Daily Pivot Point S2	1.0816
Daily Pivot Point S3	1.0803
Daily Pivot Point R1	1.0847
Daily Pivot Point R2	1.086
Daily Pivot Point R3	1.0869

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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