🏗️ 1. Pattern Structure Breakdown
🔵 Cup Formation:
The left side of the chart illustrates a steep decline beginning around mid-October 2024, forming the left lip of the cup.
The bottom of the cup was established between late December 2024 and early February 2025, where the market found a strong support level near 1.0220.
A rounded bottom formed, which indicates accumulation and decreasing bearish momentum.
The right side of the cup shows a strong bullish reversal from the support zone, gradually returning to the previous highs around 1.1050–1.1100, completing the cup shape.
⚫ Handle Formation:
A slight pullback or consolidation occurred after reaching the resistance zone, forming the handle between late March and early April 2025.
This handle appears as a small descending channel or flag, which is typical for this pattern.
Price remained above the support trendline, showing strength in the handle without breaking the overall bullish structure.
🔍 2. Key Technical Zones
📌 Resistance Level (Breakout Zone): 1.1050 – 1.1100
Marked by prior price rejection and the top of the cup.
The successful breakout above this zone confirms the cup and handle breakout.
📌 Support Level: 1.0220 – 1.0300
This zone provided a base during the cup’s rounding bottom and serves as a critical demand area.
📌 Stop Loss: 1.07380
Positioned below the recent swing low (handle low), providing a safe buffer.
This placement respects both market structure and risk management.
🎯 3. Target Projection
✅ Price Target: 1.14780
Based on the measured move technique:
Measure the depth of the cup (approx. 1.1100 - 1.0220 = 880 pips).
Project that distance above the breakout point (around 1.1050).
Target = 1.1050 + 0.0880 = 1.1930 (but a conservative target of 1.14780 is used here).
This target aligns with a previous resistance level from mid-2023, adding confluence.
📈 4. Trade Setup Summary
Component Description
Pattern Cup and Handle (Bullish Continuation)
Entry Point Breakout above 1.1050 resistance
Stop Loss Below 1.0738 (recent low)
Target 1.1478 (based on measured move)
Risk/Reward Ratio Approx. 1:2.5 or better
💡 5. Technical Insights and Confluence
Volume Consideration (if available): Typically, volume decreases during the cup and increases during the breakout. Although volume is not shown here, this pattern suggests accumulation.
Handle Behavior: The handle did not breach the mid-point of the cup, maintaining a strong bullish structure.
Market Sentiment: Given the steady incline and the bullish breakout, it suggests buyers are in control.
🏁 Conclusion
This is a textbook Cup and Handle breakout setup on the EUR/USD daily chart. The structure shows a clear transition from bearish to bullish sentiment, accumulation at support, and a confirmed breakout with strong potential upside.
It offers an excellent long opportunity with favorable risk-reward, clear invalidation, and a historically reliable price pattern.
🔵 Cup Formation:
The left side of the chart illustrates a steep decline beginning around mid-October 2024, forming the left lip of the cup.
The bottom of the cup was established between late December 2024 and early February 2025, where the market found a strong support level near 1.0220.
A rounded bottom formed, which indicates accumulation and decreasing bearish momentum.
The right side of the cup shows a strong bullish reversal from the support zone, gradually returning to the previous highs around 1.1050–1.1100, completing the cup shape.
⚫ Handle Formation:
A slight pullback or consolidation occurred after reaching the resistance zone, forming the handle between late March and early April 2025.
This handle appears as a small descending channel or flag, which is typical for this pattern.
Price remained above the support trendline, showing strength in the handle without breaking the overall bullish structure.
🔍 2. Key Technical Zones
📌 Resistance Level (Breakout Zone): 1.1050 – 1.1100
Marked by prior price rejection and the top of the cup.
The successful breakout above this zone confirms the cup and handle breakout.
📌 Support Level: 1.0220 – 1.0300
This zone provided a base during the cup’s rounding bottom and serves as a critical demand area.
📌 Stop Loss: 1.07380
Positioned below the recent swing low (handle low), providing a safe buffer.
This placement respects both market structure and risk management.
🎯 3. Target Projection
✅ Price Target: 1.14780
Based on the measured move technique:
Measure the depth of the cup (approx. 1.1100 - 1.0220 = 880 pips).
Project that distance above the breakout point (around 1.1050).
Target = 1.1050 + 0.0880 = 1.1930 (but a conservative target of 1.14780 is used here).
This target aligns with a previous resistance level from mid-2023, adding confluence.
📈 4. Trade Setup Summary
Component Description
Pattern Cup and Handle (Bullish Continuation)
Entry Point Breakout above 1.1050 resistance
Stop Loss Below 1.0738 (recent low)
Target 1.1478 (based on measured move)
Risk/Reward Ratio Approx. 1:2.5 or better
💡 5. Technical Insights and Confluence
Volume Consideration (if available): Typically, volume decreases during the cup and increases during the breakout. Although volume is not shown here, this pattern suggests accumulation.
Handle Behavior: The handle did not breach the mid-point of the cup, maintaining a strong bullish structure.
Market Sentiment: Given the steady incline and the bullish breakout, it suggests buyers are in control.
🏁 Conclusion
This is a textbook Cup and Handle breakout setup on the EUR/USD daily chart. The structure shows a clear transition from bearish to bullish sentiment, accumulation at support, and a confirmed breakout with strong potential upside.
It offers an excellent long opportunity with favorable risk-reward, clear invalidation, and a historically reliable price pattern.
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.
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.