EUR/USD Daily Price Forecast – 8th April 2025

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Trade Summary:

EURUSD
Buy Stop @ 1.10017
TP @ 1.10505
SL @ 1.08982

EUR/USD Analysis (H4 Chart)

Overview

The EUR/USD chart provided is a 4-hour (H4) timeframe, showing a clear setup for a potential bullish breakout. The chart includes key levels for a Buy Stop, Stop Loss (SL), and Take Profit (TP), along with moving averages that provide additional insights into the trend and momentum.

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Key Levels

• Buy Stop: 1.10017

  • This level is set slightly above the current price, indicating a breakout strategy. The trader expects the price to rise above this level before entering a long position.

• Stop Loss (SL): 1.08982

  • The SL is placed below recent support levels, providing a safety net in case the price reverses and invalidates the bullish setup.

• Take Profit (TP): 1.10505

  • The TP is set at a resistance level, where the trader expects the price to face selling pressure or consolidate.

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Technical Indicators

• Moving Averages:

  • Red Line (200-period MA): This represents the long-term trend. The price is currently trading above this moving average, indicating a bullish bias.

  • Yellow Line (50-period MA): The medium-term trend is also bullish, as the price is above this moving average.

  • Green Line (20-period MA): The short-term trend is bullish, with the price trading above this line. The moving averages are aligned in a bullish sequence (20 > 50 > 200), confirming upward momentum.

• Candlestick Patterns:

  • Recent candlesticks show bullish momentum, with higher highs and higher lows forming. This supports the breakout strategy.

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Market Sentiment

• The setup suggests a bullish sentiment, with the trader anticipating a continuation of the upward trend. The alignment of moving averages and the breakout level at 1.10017 indicate confidence in further price appreciation.

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Risk-Reward Analysis

• Entry: 1.10017

• Stop Loss: 1.08982 (approximately 103 pips below entry)

• Take Profit: 1.10505 (approximately 49 pips above entry)

The risk-reward ratio is slightly below 1:1, which may not be ideal for some traders. However, the setup relies on the strength of the breakout and the bullish trend.

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Potential Scenarios

• Bullish Breakout:

  • If the price breaks above 1.10017, it is likely to reach the TP at 1.10505, as there is minimal resistance in this zone.

• Rejection at Resistance:

  • If the price fails to break above 1.10017, it may retrace toward the SL at 1.08982, invalidating the bullish setup.

• Consolidation:

  • The price may consolidate between the 1.10017 and 1.08982 levels before making a decisive move.

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Conclusion

The EUR/USD pair is showing a bullish setup on the H4 chart, supported by moving averages and a breakout strategy. Traders should monitor the 1.10017 level closely for confirmation of the breakout. Proper risk management is essential, as the risk-reward ratio is relatively tight.

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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