EUR/USD Price Analysis and Trade Forecast: Daily Trading Signal

Daily Price Outlook

- EUR/USD breaks above descending channel and 50 EMA

- RSI at 61.78 confirms bullish momentum

- Price structure favors buying above $1.08120 with $1.08849 target

The euro is showing signs of a trend reversal after a decisive breakout above the descending channel that had constrained price action since mid-March.

Trading at $1.08217, EUR/USD has cleared the key pivot level of $1.08120, signaling renewed bullish interest and a potential shift in short-term market sentiment.

The move comes after a sharp rebound from the $1.07585 level, backed by a breakout above the 50-period SMA ($1.07913), now acting as dynamic support.

The recent rally is technically significant, as it follows weeks of downward momentum and coincides with a strong RSI rebound.

The Relative Strength Index currently reads 61.78, pointing to growing bullish momentum without yet entering overbought territory.

Traders are eyeing a move toward the next resistance levels at $1.08544 and $1.08849, with extended upside potential toward $1.09177.

The setup favors a continuation higher, particularly if EUR/USD holds above the $1.08120 pivot. A failure to maintain this breakout level could lead to a retest of $1.07585 and, if breached, expose support at $1.07214 and $1.06780.

For now, however, the price structure favors buying dips, with the breakout confirmed by both price action and momentum.

A favorable risk-reward setup is evident for long positions entered above $1.08120, targeting $1.08849, with a stop loss below $1.07585.

The shift in structure and the break above the channel suggest further gains are likely, barring any major macro-driven dollar strength.

EUR/USD has confirmed a bullish breakout above $1.08120. The trend favors upside toward $1.08849, while $1.07585 remains key support to protect the bias.

EUR/USD - Trade Ideas

Entry Price – Buy Above 1.08120

Take Profit – 1.08849

Stop Loss – 1.07585

Risk to Reward – 1: 1.3

Profit & Loss Per Standard Lot = +$729/ -$535

Profit & Loss Per Mini Lot = +$72/ -$53