fxs_header_sponsor_anchor

News

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.

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

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.