Chart Analysis: EUR/USD (30-Minute Timeframe)
Date: May 9, 2025
Instrument: EUR/USD
Platform: TradingView
Pattern Identified: Falling Wedge – Bullish Reversal Setup
🔍 Pattern Breakdown: Falling Wedge Formation
The chart displays a classic falling wedge pattern, identified by two downward-sloping, converging trendlines. This structure typically suggests a loss of bearish momentum and the potential for a bullish breakout.
The wedge forms following a strong bearish move from the resistance zone (around 1.13129), which confirms seller dominance initially.
As the pattern progresses, the price forms higher lows and lower highs within the wedge, indicating weakening selling pressure.
The support zone around 1.11800 – 1.12000 holds firm, forming a double bottom-like structure and providing the basis for a bullish reversal.
📌 Key Technical Levels
Resistance Zone: 1.12900 – 1.13129
This zone marks the prior swing high and previous structural resistance.
Support Zone: 1.11750 – 1.12000
Strong reactionary demand has formed here, with buyers stepping in multiple times.
Breakout Point: Approximately 1.12400 – 1.12500
Price action begins to break above the wedge, suggesting potential for bullish momentum.
TP (Take Profit): 1.12715
This intermediate resistance level is a reasonable target based on prior structure.
Final Target: 1.13129
Aligned with the previous high and resistance zone. A strong breakout could drive price to retest this level.
SL (Stop Loss): 1.11756
Placed below the swing low to invalidate the setup if price breaks support.
📈 Trade Setup Explanation
This is a bullish breakout strategy following a confirmed falling wedge pattern. The setup focuses on:
Entry: Upon clear breakout and close above wedge resistance (post-confirmation).
TP1: At 1.12715 to secure partial profits.
TP2 / Final Target: 1.13129, allowing the trade to capitalize on full wedge breakout potential.
SL: At 1.11756, below the structure's lowest point, maintaining a healthy risk-to-reward ratio (RRR).
💡 Strategic Insight
This trade reflects a high-probability reversal following a bearish exhaustion pattern. The falling wedge, in confluence with:
Price action support at key levels
Bullish momentum building at the lower wedge boundary
Rejection wicks indicating demand
…offers a textbook opportunity for a trend reversal toward higher highs.
This aligns with bullish market psychology—where bears lose control, consolidation tightens, and breakout traders initiate upward pressure.
✅ Conclusion
The EUR/USD pair presents a well-defined bullish opportunity supported by technical pattern structure, strong confluence zones, and healthy RRR. Traders should monitor price action closely at the breakout zone to confirm momentum and consider scaling in strategically.
Date: May 9, 2025
Instrument: EUR/USD
Platform: TradingView
Pattern Identified: Falling Wedge – Bullish Reversal Setup
🔍 Pattern Breakdown: Falling Wedge Formation
The chart displays a classic falling wedge pattern, identified by two downward-sloping, converging trendlines. This structure typically suggests a loss of bearish momentum and the potential for a bullish breakout.
The wedge forms following a strong bearish move from the resistance zone (around 1.13129), which confirms seller dominance initially.
As the pattern progresses, the price forms higher lows and lower highs within the wedge, indicating weakening selling pressure.
The support zone around 1.11800 – 1.12000 holds firm, forming a double bottom-like structure and providing the basis for a bullish reversal.
📌 Key Technical Levels
Resistance Zone: 1.12900 – 1.13129
This zone marks the prior swing high and previous structural resistance.
Support Zone: 1.11750 – 1.12000
Strong reactionary demand has formed here, with buyers stepping in multiple times.
Breakout Point: Approximately 1.12400 – 1.12500
Price action begins to break above the wedge, suggesting potential for bullish momentum.
TP (Take Profit): 1.12715
This intermediate resistance level is a reasonable target based on prior structure.
Final Target: 1.13129
Aligned with the previous high and resistance zone. A strong breakout could drive price to retest this level.
SL (Stop Loss): 1.11756
Placed below the swing low to invalidate the setup if price breaks support.
📈 Trade Setup Explanation
This is a bullish breakout strategy following a confirmed falling wedge pattern. The setup focuses on:
Entry: Upon clear breakout and close above wedge resistance (post-confirmation).
TP1: At 1.12715 to secure partial profits.
TP2 / Final Target: 1.13129, allowing the trade to capitalize on full wedge breakout potential.
SL: At 1.11756, below the structure's lowest point, maintaining a healthy risk-to-reward ratio (RRR).
💡 Strategic Insight
This trade reflects a high-probability reversal following a bearish exhaustion pattern. The falling wedge, in confluence with:
Price action support at key levels
Bullish momentum building at the lower wedge boundary
Rejection wicks indicating demand
…offers a textbook opportunity for a trend reversal toward higher highs.
This aligns with bullish market psychology—where bears lose control, consolidation tightens, and breakout traders initiate upward pressure.
✅ Conclusion
The EUR/USD pair presents a well-defined bullish opportunity supported by technical pattern structure, strong confluence zones, and healthy RRR. Traders should monitor price action closely at the breakout zone to confirm momentum and consider scaling in strategically.
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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.
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.