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