This chart represents a bullish setup for the EUR/USD currency pair on the 4-hour time frame. Multiple technical tools have been applied to support the buy breakout strategy. Below is a breakdown of the analysis:
1. Key Support Zone (Green Box & Blue Line at 1.07130)
A strong demand zone has been identified around 1.07130, marked by a green horizontal box.
This level aligns with the 38.2% Fibonacci retracement, making it a crucial area for potential bullish reversals.
Price has retested this support multiple times and has started forming higher lows.
2. Bullish Trendline & Structure (Yellow Trendlines)
The ascending trendline from early March is still intact, showing an overall bullish trend.
A falling wedge pattern has formed, which is a bullish continuation signal.
The breakout from the wedge suggests upward momentum.
3. Buy Breakout Confirmation (Gray Label & Arrows)
A buy breakout label is placed where the price starts breaking the wedge pattern.
Blue arrows indicate an expected price movement towards the next key resistance levels.
4. Key Resistance Targets (Green Horizontal Box & Blue Line at 1.09561)
The first target is around 1.09561, which is a previous swing high and a major resistance zone.
If price breaks above 1.09561, a further rally towards 1.11000 is expected.
5. Fibonacci Confirmation
The 23.6% Fibonacci retracement aligns with the current price action, confirming support for the breakout.
The 38.2% retracement level (1.07280) acts as secondary support in case of a pullback.
Conclusion
Bullish setup is confirmed by:
Support holding at 1.07130
Breakout from falling wedge pattern
Trendline support remaining intact
Targeting 1.09561 and higher
Trading Strategy:
Buy above 1.08055 (current breakout level)
Target: 1.09561 - 1.11000
Stop-loss below 1.07280 (recent swing low)
This setup suggests a high-probability long trade if price sustains above the breakout level.
1. Key Support Zone (Green Box & Blue Line at 1.07130)
A strong demand zone has been identified around 1.07130, marked by a green horizontal box.
This level aligns with the 38.2% Fibonacci retracement, making it a crucial area for potential bullish reversals.
Price has retested this support multiple times and has started forming higher lows.
2. Bullish Trendline & Structure (Yellow Trendlines)
The ascending trendline from early March is still intact, showing an overall bullish trend.
A falling wedge pattern has formed, which is a bullish continuation signal.
The breakout from the wedge suggests upward momentum.
3. Buy Breakout Confirmation (Gray Label & Arrows)
A buy breakout label is placed where the price starts breaking the wedge pattern.
Blue arrows indicate an expected price movement towards the next key resistance levels.
4. Key Resistance Targets (Green Horizontal Box & Blue Line at 1.09561)
The first target is around 1.09561, which is a previous swing high and a major resistance zone.
If price breaks above 1.09561, a further rally towards 1.11000 is expected.
5. Fibonacci Confirmation
The 23.6% Fibonacci retracement aligns with the current price action, confirming support for the breakout.
The 38.2% retracement level (1.07280) acts as secondary support in case of a pullback.
Conclusion
Bullish setup is confirmed by:
Support holding at 1.07130
Breakout from falling wedge pattern
Trendline support remaining intact
Targeting 1.09561 and higher
Trading Strategy:
Buy above 1.08055 (current breakout level)
Target: 1.09561 - 1.11000
Stop-loss below 1.07280 (recent swing low)
This setup suggests a high-probability long trade if price sustains above the breakout level.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
For Training visit.
Website wave-trader.com
Website techtradingacademy.com
Slack: wavetraders.slack.com
Telegram: t.me/Wavetraders
X: twitter.com/Wave__Trader
FB: facebook.com/WTimran
Website wave-trader.com
Website techtradingacademy.com
Slack: wavetraders.slack.com
Telegram: t.me/Wavetraders
X: twitter.com/Wave__Trader
FB: facebook.com/WTimran
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.