EUR/USD Trading Signal – Bullish Reversal Opportunity – April 26, 2025

Introduction:

The EUR/USD trading signal for April 26, 2025, shows potential for a bullish reversal as the pair pulls back to the 1.0700 level. With the U.S. PCE inflation data set to release today, traders should watch for a breakout above 1.0735 to confirm the signal and take advantage of a potential upward movement.

Trade Setup:

• Position: Long (Buy)

• Entry Price: 1.0735 (after breakout confirmation)

• Stop Loss: 1.0695

• Take Profit 1: 1.0775

• Take Profit 2: 1.0800

• Take Profit 3: 1.0850

This trade setup is designed for a potential move higher, targeting key resistance levels at 1.0775, 1.0800, and 1.0850. The entry point is confirmed with a break above 1.0735, and this setup aims to capitalize on the likely reversal.

Technical Breakdown:

• Support Level: 1.0700

• Resistance Levels: 1.0775, 1.0800, and 1.0850

• Indicators:

  • RSI (Relative Strength Index): RSI is at 50, signaling room for upward movement before entering overbought conditions.

  • MACD (Moving Average Convergence Divergence): A bullish crossover is visible on the H1 chart, supporting the upside bias.

  • Moving Averages: The 50-SMA crossing above the 200-SMA indicates potential for further upward momentum.

Fundamental Backdrop:

The EUR/USD pair is reacting to the weakness in the U.S. dollar, and the upcoming PCE inflation data will be a critical driver. If the inflation report shows softer-than-expected results, the U.S. dollar could weaken further, providing a favorable environment for EUR/USD to move higher.

Risk Management:

• Stop Loss: Place the stop loss at 1.0695, just below the recent support level of 1.0700.

• Scaling Out: Consider taking partial profits at 1.0775 and 1.0800, allowing the remaining position to run towards 1.0850.

Related Resources:

• Daily Market Analysis – April 26, 2025
  (Link to today’s full market analysis)

• Daily Forex Signals
  (Link to the category for more trading signals)

Strategy Summary:

Conclusion and Trader’s Recommendation:

As we await the U.S. PCE inflation data, the EUR/USD trading signal suggests a potential bullish reversal. A break above 1.0735 could trigger a move towards 1.0775, 1.0800, and 1.0850. Traders should manage their risk with proper stop loss placements and watch for data-driven volatility.

Trader’s Recommendation:

• EUR/USD: Buy at 1.0735 with a stop loss at 1.0695. Targets: 1.0775, 1.0800, and 1.0850.

• Stay alert for news announcements and adjust positions accordingly to manage risk effectively.

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