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

Daily Price Outlook

- EUR/USD forming a potential bullish wedge, supporting recovery.

- RSI indicates moderate strength, supporting further gains.

- Break above $1.1380 needed for a sustained rally.

EUR/USD is trading around $1.1365, consolidating within a descending wedge pattern, a structure typically associated with potential bullish reversals.

The pair is testing the 50-day Simple Moving Average (SMA) at $1.1323, which has acted as dynamic support in recent sessions.

A series of higher lows on the recent bounce from the $1.1265 level suggests building bullish momentum, supported by a minor trendline connecting recent lows.

Candlestick analysis reveals a potential bullish engulfing pattern forming just above the $1.1323 support, reinforcing the bullish case.

However, the pair faces immediate resistance at $1.1380, where a bearish shooting star formed recently, indicating possible short-term selling pressure.

A break above this level could open the door to the next resistance at $1.1421, aligning with the recent swing high. Beyond this, the $1.1452 level stands as a key barrier, representing a critical psychological level for bulls.

The Relative Strength Index (RSI) is currently at 58.75, just below the 60 level, suggesting the pair has room to extend its recovery before entering overbought territory.

However, a break below the immediate support at $1.1323 could trigger a deeper pullback toward $1.1298 or even the critical $1.1265 support, aligning with the lower wedge boundary.

EUR/USD - Trade Ideas

Entry Price – Buy Above 1.13489

Take Profit – 1.13993

Stop Loss – 1.13157

Risk to Reward – 1: 1.5

Profit & Loss Per Standard Lot = +$504/ -$332

Profit & Loss Per Mini Lot = +$50/ -$33