EUR/USD Price Analysis: Looks north with falling wedge breakout on 4H

• EUR/USD’s 4-hour chart shows a bullish reversal pattern, 
• The pair looks north, looks set to test lower highs at 1.2178-1.2223.

EUR/USD is trading close to 1.2140, representing marginal gains on the day. 

The 4-hour chart shows a falling wedge breakout on the 4-hour chart, a bullish reversal pattern. The pattern indicates the corrective pullback from highs near 1.2350 has ended, and the bulls have regained control. 

The breakout is backed by a double bottom bullish breakout on the 4-hour chart Relative Strength Index. On the way higher, the pair may encounter resistance at 1.2178 and 1.2223.

Tuesday’s low of 1.2074 is the level to beat for the bears. 

4-hour chart

Trend: Bullish

Technical levels