EUR/USD Price Analysis: Rising wedge breakdown confirmed

• EUR/USD's daily chart shows a bearish reversal pattern. 
• An-above-1.23 close is needed to abort the bearish view.

EUR/USD has dived out of a rising wedge pattern represented by trendlines connecting Nov. 4 and Nov. 23 lows and Oct. 21 and Dec. 3 highs. 

Backed by a bearish divergence of the 14-day Relative Strength Index, the breakdown indicates that the rally from the November low of 1.1602 has ended, and the sellers have regained control. 

The immediate support is seen at 1.2129 (Dec. 21 low), followed by the psychological support of 1.20. However, a decline to these levels may happen following a re-test of the lower end of the rising wedge hurdle, currently at 1.2283. 

A daily close above 1.23 is needed to invalidate bearish pressures. 

Daily chart

Trend: Bearish

Technical levels