EUR/USD Price Analysis: Trapped in a rising wedge

EUR/USD has carved out a rising wedge pattern on the daily chart.
The daily RSI favors a rising wedge breakdown, a bearish reversal pattern.

Omkar Godbole FXStreet Contributor

After failing to keep gains above 1.23 for four straight trading days, EUR/USD finally found acceptance above the psychological hurdle on Wednesday.

At press time, the pair is trading near 1.2332. With the newfound resistance scaled, the path of least resistance appears to be on the higher side.

However, readers should note that the rally from the November low of 1.1602 has taken the shape of a rising wedge. The pattern comprises converging trendlines connecting higher lows and higher highs and is considered a bearish reversal pattern.

A move below the lower end of the rising wedge, currently at 1.2277, would confirm a breakdown or bearish reversal and open the doors for a re-test of 1.20. The bearish divergence of the 14-day Relative Strength Index indicates scope for a rising wedge breakdown.

Should the potential breakdown fail to invite offers, a more decisive move toward 1.25 will likely unfold.

Daily chart

Trend: Bearish

Technical levels

EUR/USD

Overview
Today last price	1.2333
Today Daily Change	0.0009
Today Daily Change %	0.07
Today daily open	1.2324

Trends
Daily SMA20	1.2213
Daily SMA50	1.2018
Daily SMA100	1.1905
Daily SMA200	1.1565

Levels
Previous Daily High	1.235
Previous Daily Low	1.2266
Previous Weekly High	1.231
Previous Weekly Low	1.2181
Previous Monthly High	1.231
Previous Monthly Low	1.1924
Daily Fibonacci 38.2%	1.2317
Daily Fibonacci 61.8%	1.2298
Daily Pivot Point S1	1.2277
Daily Pivot Point S2	1.2229
Daily Pivot Point S3	1.2193
Daily Pivot Point R1	1.236
Daily Pivot Point R2	1.2397
Daily Pivot Point R3	1.2444

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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