We’re observing a potential bullish reversal on the EUR/USD daily chart, as the harmonic ABCD pattern nears completion at a key support zone around 1.0796. This setup aligns well with the technical indicators suggesting a momentum shift, which could provide strong trade opportunities in the coming days.
Key Analysis Points:
ABCD Harmonic Pattern The pattern has fully completed, with point D sitting on the support level at 1.0796, increasing the chances of a reversal. Harmonic patterns, especially ABCD, are known for their reliability in predicting market reversals.
Technical Indicators TDI Indicator shows early signs of recovery, hinting at a potential reversal from the recent downtrend. TDI Momentum lines crossing at lower levels suggest an uptick in buying pressure is imminent. Overall Market Sentiment
While EUR/USD has faced bearish pressure recently, the holding of 1.0796 as support increases the likelihood that the downward move could be running out of steam. A bounce here may signal a new bullish phase.
Investment Strategies:
1.Bullish Reversal Buy at Point D
Entry: Buy around 1.0796, taking advantage of the expected bounce from the harmonic pattern's D point. Take Profit: 1.1001, the first major resistance. Stop Loss: 1.0731. Risk/Reward: 1:2+ Rationale: Point D in the ABCD pattern typically marks the end of the correction, and the technical indicators align with this reversal scenario.
2.Breakout Buy Above 1.0917
Entry: Buy upon a confirmed breakout and close above 1.0917. Take Profit: Initial target at 1.1035, with an extended target at 1.1172. Stop Loss: Below the nearest support, around 1.0850. Risk/Reward: 1:2 Rationale: A breakout above 1.0917 could solidify the bullish reversal and attract additional buyers, leading to a rapid move higher.
Both the reversal buy near 1.0796 and the breakout buy above 1.0917 offer high-probability opportunities based on the current market structure and technical analysis. Keep an eye on price action confirmation on lower timeframes to optimize entries.