TraderEye Market View: EUR/USD Technical Outlook – Bullish Wedge with ‘W’ Formation at the Base

Sunday, April 6, 2025

EUR/USD Technical Outlook – Bullish Wedge with ‘W’ Formation at the Base

📌 Attached: A chart showing the hourly Bullish Falling Wedge pattern with a confirmed ‘W’ double bottom formation at the base, suggesting imminent breakout potential.

🔍 Technical Analysis & Market Structure

The EUR/USD currency pair is currently displaying a Bullish Falling Wedge on the hourly timeframe – a well-known continuation or reversal pattern that suggests momentum is coiling before a potential upward breakout.

What makes this setup particularly compelling is the emergence of a ‘W’ double-bottom formation at the lower boundary of the wedge. This formation indicates strong buyer defense at support and a growing appetite for a bullish reversal.

The confluence of the Wedge pattern and the double-bottom trigger provides a technically sound and high-probability setup that could lead to an impulsive move higher if confirmed with a breakout above wedge resistance.

🌍 Macro Context – Dollar Weakness Amid Trade Uncertainty

Recent macroeconomic pressures — including President Trump’s announcement of sweeping global tariffs — have rattled markets, leading to short-term USD weakness as traders anticipate retaliatory measures and policy uncertainty.

The Euro, while contending with its own set of economic challenges, may benefit in the short term from this shift in dollar sentiment, aligning well with the technical scenario now unfolding.

🧭 Summary & Trade Outlook

✅ Bullish Falling Wedge – Signaling compression of bearish momentum with breakout potential.
✅ W-Formation (Double Bottom) – Adds structural confirmation of a likely bullish reversal.
✅ Macro Factors – Tariff-driven USD weakness may further support EUR/USD upside.

📌 Traders should watch for a decisive breakout above wedge resistance and validate with strong candle closes and momentum confirmation. Continuation targets can be evaluated based on prior resistance levels and Fibonacci extensions.

🛡️ Extended Legal Disclaimer

This analysis is intended solely for educational and informational purposes and does not constitute financial advice or a solicitation to buy or sell any financial instrument. The author is not a licensed financial advisor, portfolio manager, or certified investment consultant. Trading forex carries substantial risk and may not be suitable for all investors. All readers should conduct their own independent research and consult a licensed financial professional before making any investment decisions. The author accepts no liability for losses incurred from the use of this content.

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