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

Daily Price Outlook

- Bullish Reversal: Engulfing candle signals potential upside.

- Momentum Shift: RSI recovering from oversold territory.

- Critical Resistance: $1.12937 remains a key barrier for bulls.

EUR/USD has staged a sharp recovery from the $1.11990 support, forming a bullish engulfing candle that signals potential upside.

The pair is now approaching the $1.12701 pivot point, with the 50 SMA at $1.12937 acting as immediate resistance. This area aligns closely with the recent breakdown level, making it a critical test for bullish momentum.

If buyers can push through this zone, the next resistance is at $1.12809, followed by a more significant barrier around $1.13058.

Technically, the RSI is climbing from oversold levels, currently at 44.81, indicating a potential momentum shift. The recent series of higher lows adds to the bullish case, suggesting the pair may attempt a larger recovery.

However, the overall trend remains bearish, as the 50 SMA continues to cap gains, and a break below $1.12332 could expose the pair to deeper losses toward $1.11990 and $1.11683.

In the short term, a move above the 50 SMA at $1.12937 is needed to confirm a more meaningful recovery, potentially opening the door to $1.13361.

However, failure to clear this barrier could see the pair resume its broader downtrend, with the $1.11990 support acting as a critical floor.

A sustained move above $1.12701 could trigger a push toward $1.12809, while a drop below $1.12332 risks a retest of $1.11990.

EUR/USD - Trade Ideas

Entry Price – Buy Above 1.12332

Take Profit – 1.12809

Stop Loss – 1.11990

Risk to Reward – 1: 1.3

Profit & Loss Per Standard Lot = +$477/ -$342

Profit & Loss Per Mini Lot = +$47/ -$34