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

Daily Price Outlook

- EUR/USD breaks higher above $1.12804 with momentum favoring bulls

- RSI suggests short-term overbought risks—watch for minor pullbacks

- Targeting $1.14111 with key support now forming at $1.12804

EUR/USD continues its bullish breakout, pushing toward the $1.13830 region after clearing the key $1.12804 pivot. The pair is riding a strong upside channel, supported by a steep RSI climb currently at 76.22—well into overbought territory. Still, momentum remains in the bulls’ favor following yesterday’s soft U.S. inflation data, which weighed on the dollar and bolstered euro demand.

Price is now pressing against immediate resistance near $1.13830, with the next target at $1.14111. A sustained break above this level could expose the $1.14483 zone. On the downside, $1.12804 now acts as a critical support level, and below that, $1.12021 is the line in the sand for short-term bulls.

Technically, the pair is well supported above the 50 SMA, currently at $1.10382, and has room to run if risk sentiment stays upbeat. However, with RSI flashing overbought, traders should be cautious of short-term pullbacks or profit-taking near the highs. Momentum remains strong but needs confirmation through a daily close above $1.14111.

EUR/USD - Trade Ideas

Entry Price – Buy Above 1.12804

Take Profit – 1.14111

Stop Loss – 1.12021

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$1307/ -$783

Profit & Loss Per Mini Lot = +$130/ -$78