EUR/USD breaks out of the descending wedge formation on the 4-hour chart

• EUR/USD trades 0.76% higher on Monday as dollar weakness kicks in.
• The price has just broken out of the 4-hour wedge price pattern.

EUR/USD 4-hour chart

The US dollar has been trading well today but it has been more of a function of USD weakness. EUR/USD has been a great performing pair over the last month or so rising 3.31%. 

On a technical note, the main feature on the chart is the descending wedge pattern. The pattern has now been broken to the upside but only just. The price also broke through the 4-hour 55 period Exponential Moving Average. The market has been making some lower highs and lower lows but the previous wave high has now been broken. So back to bullish mode for the pair. 

The MACD indicator is now mixed, the histogram has moved into the green but the signal lines are still below the mid-point. The Relative Strength Index has pushed above the 50 line and now positive territory and there is still room to move to the upside.

Over the coming sessions, the main support level will be the wave low of 1.1168 and the resistance zone on the upside is 1.1285. Beyond that 1.1350 also looks like it could be sticky but if the bulls can break through there then the bull run is certainly back on.

Additional levels