EUR/USD Daily Price Forecast – 3rd April 2025

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Trade Summary:

EURUSD
Buy Stop @ 1.09258
TP @ 1.09717
SL @ 1.08369

EUR/USD Analysis (H4 Chart)

Overview

The EUR/USD chart provided is a 4-hour (H4) timeframe, showing a bullish trend with key levels marked for a potential trade setup. The chart includes moving averages and clearly defined entry, stop-loss, and take-profit levels.

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Key Observations

• Trend Analysis:

  • The pair is in a strong uptrend, as indicated by the higher highs and higher lows.

  • The price has broken above key resistance levels, confirming bullish momentum.

• Moving Averages:

  • The red line (likely a longer-term moving average) is sloping upward, confirming the bullish trend.

  • The yellow and green lines (shorter-term moving averages) are also trending upward and have crossed above the red line, signaling a continuation of the bullish momentum.

• Trade Setup:

  • Buy Stop: Placed at 1.09258, slightly above the recent resistance level, to confirm the breakout.

  • Stop Loss (SL): Positioned at 1.08369, below a recent support level, to limit downside risk.

  • Take Profit (TP): Set at 1.09717, targeting a key resistance level above the current price.

• Price Action:

  • The recent bullish candlesticks show strong momentum, with minimal retracement, indicating buyer dominance.

  • The breakout above the resistance level near 1.09200 is significant, as it suggests further upside potential.

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Technical Levels

• Resistance Levels:

  • 1.09717: The take-profit level and a key resistance zone.

  • 1.09258: The breakout level and buy stop entry point.

• Support Levels:

  • 1.08369: The stop-loss level and a key support zone.

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Trade Analysis

• Risk-Reward Ratio:

  • The distance between the entry (1.09258) and stop-loss (1.08369) is approximately 89 pips.

  • The distance between the entry (1.09258) and take-profit (1.09717) is approximately 46 pips.

  • The risk-reward ratio is slightly below 1:1, which may require careful consideration.

• Market Sentiment:

  • The bullish momentum suggests strong market sentiment in favor of the euro against the dollar.

  • However, traders should monitor for potential reversals or exhaustion near the take-profit level.

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Recommendations

• Entry Confirmation:

  • Wait for the price to break and close above 1.09258 before entering the trade to confirm the breakout.

• Risk Management:

  • Ensure proper position sizing to manage risk, as the stop-loss is relatively wide.

• Monitoring:

  • Watch for any reversal patterns or bearish candlesticks near the resistance level at 1.09717.

• Fundamental Factors:

  • Keep an eye on economic data releases or geopolitical events that could impact the EUR/USD pair.

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Conclusion

The EUR/USD pair is showing strong bullish momentum, with a well-defined trade setup. The buy stop at 1.09258 aligns with the breakout strategy, while the stop-loss at 1.08369 provides adequate protection. The take-profit at 1.09717 targets a logical resistance level. However, traders should remain cautious of the risk-reward ratio and monitor for any signs of reversal.

Recommended Lot Size

Trading is all about statistics.

While we can experience winning streaks, we can also suffer from losing streaks.

As such, we should always size each trade to withstand losing streaks (if any).

It's widely recommended that you should not risk more than 2% of your capital for each trade.

We believe it's easier to control your lot size by limiting your lot sizing to 0.01 for every $500 in your account.

So if you have $5000, then risk no more than 0.10 lot size per trade.

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If you spot a mistake especially when it comes to the price, please use common sense and check the chart.

We wish you good luck and good profit for this trade idea.

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