EUR/USD Trading Signal – May 3, 2025
The EUR/USD pair continues to trade under bearish pressure amid sustained dollar strength and rising geopolitical uncertainty. Our professional trading desk has issued today’s high-probability signal after a multi-timeframe technical and fundamental convergence.
Trade Setup (Primary Scenario)
| Entry | Stop Loss | Take Profit 1 | Take Profit 2 |
|---|---|---|---|
| 1.0705 (Sell) | 1.0750 | 1.0640 | 1.0590 |
Trade Type: Short
Signal Validity: Until end of day or upon major breakout above 1.0760
Risk-to-Reward Ratio: 1:2.3
Confidence Score: 
High
Technical Analysis
Daily Chart Overview
EUR/USD remains locked in a bearish channel, with price action failing to break above the descending trendline from the March 2025 high. The 50-day EMA continues to cap upside moves, and today’s candle has already pierced through the 1.0710 intraday support.
Key Technical Signals:
-
RSI (14) falling below 40 – bearish momentum building. -
MACD histogram widening in negative territory.
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Price rejected at 1.0738 – key Fibonacci 61.8% level. -
Price firmly below 50 and 200-day EMAs.
Intraday Levels
| Resistance | Pivot | Support |
|---|---|---|
| 1.0745 | 1.0710 | 1.0640 |
Chart Pattern
Bearish flag breakdown on H4 timeframe, confirmed by high-volume rejection wicks on recent candles — signaling strong selling pressure and potential continuation below 1.0650.
Fundamental Overview
The euro continues to face headwinds:
-
Eurozone inflation cooled to 2.4% (vs. 2.6% expected), increasing pressure on the ECB to ease. -
US data remains resilient; ISM Services PMI came in strong at 54.2. -
Fed’s Powell hinted at prolonged higher rates in recent comments, supporting the USD. -
Diverging policy expectations driving capital toward the greenback.
External Source:
Eurozone Inflation Data – TradingEconomics
Backup Scenario
If EUR/USD breaks and sustains above 1.0750 (invalidating current bias), we may see a corrective bullish push toward 1.0800, where fresh selling interest is likely.
Alternative Buy Setup:
Entry: 1.0765 | SL: 1.0725 | TP1: 1.0800 | TP2: 1.0840
Confidence:Low-Medium – countertrend structure
Risk Management Tips
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Never risk more than 1–2% of your capital per trade.
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Monitor the NY session open for confirmation volatility.
-
Always wait for candle close before executing breakouts.
Final Thoughts
Dear trader, today’s EUR/USD setup offers a technically and fundamentally aligned opportunity in favor of continued downside pressure on the pair. With macro fundamentals favoring the dollar and technical indicators pointing to a bearish continuation, this signal stands as a high-confidence trade.
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