Daily Price Outlook

- Bullish harmonic pattern completes near $1.13085 with wedge support.

- RSI climbing from oversold; price nearing 50 EMA.

- Confirmation above $1.13092 opens path to $1.13588 and $1.13962.

The EUR/USD is currently testing the lower boundary of a descending wedge, reinforced by a bullish harmonic pattern (likely a bullish Gartley) forming at point D near $1.13085.

Price action has been contained within the wedge since April 19, and recent support at $1.1309 marks a potential reversal zone. A bullish bias emerges if the pair breaks decisively above $1.13092.

Candle structure supports this view, with buyers repeatedly defending the 1.1300 zone. A clean break above the wedge resistance could push prices toward the 50-hour SMA at $1.13596, followed by the next key level at $1.13962.

The 50 SMA continues to slope downward but is flattening—an early sign of potential crossover reversal if bullish momentum accelerates.

The Relative Strength Index (RSI) is printing 39.03, rising from oversold territory. While no bullish divergence is confirmed yet, the oscillator’s uptick indicates waning bearish momentum. Additionally, the recent hammer and spinning top near support add to bullish reversal cues.

A failure to hold above $1.13085 may invalidate the bullish setup, exposing the pair to deeper losses toward $1.12788 and ultimately $1.12666.

However, the harmonic completion and wedge compression suggest an imminent volatility breakout, favoring bullish scenarios if volume confirms.

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart - Source: Tradingview

EUR/USD - Trade Ideas

Entry Price – Buy Above 1.13092

Take Profit – 1.13588

Stop Loss – 1.12788

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$496/ -$304

Profit & Loss Per Mini Lot = +$49/ -$30

EUR/USD

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