EURUSD NEXT POSSIBLE MOVE

EURUSD
As of February 3, 2025, the EUR/USD pair has experienced a significant bearish movement, opening with a strong bearish gap that pushed the price to touch the extended target at 1.0220. This decline is attributed to recent geopolitical developments, including the U.S. administration's decision to impose tariffs on Canada and Mexico, with potential expansion to European Union countries.

**Technical Overview:**

- **Current Price:** 1.0220
- **Resistance Levels:** 1.0300, 1.0325
- **Support Levels:** 1.0220, 1.0100

**Technical Indicators:**

- **Trend:** The pair is currently in a bearish trend, having broken below key support levels.
- **Relative Strength Index (RSI):** The RSI is approaching oversold territory, indicating potential for a corrective rebound.
- **Moving Averages:** The price is trading below both the 50-day and 200-day moving averages, reinforcing the bearish outlook.

**Trade Recommendation:**

Given the current market conditions and technical indicators, initiating a **buy** position carries significant risk due to the prevailing bearish momentum. However, if you anticipate a corrective rebound, consider the following cautious approach:

- **Entry Point:** Wait for a confirmed break above the immediate resistance at 1.0300 before entering a buy position.
- **Take Profit (TP):** 1.0400
- **Stop Loss (SL):** 1.0200

**Risk Management:**

This trade setup offers a 1:1 reward-to-risk ratio. Ensure that your position size aligns with your risk tolerance and overall trading strategy. Given the current volatility, it's crucial to employ strict risk management practices.

**Conclusion:**

The EUR/USD pair is currently under significant bearish pressure due to geopolitical factors and technical breakdowns. While a corrective rebound is possible, any buy positions should be approached with caution, and traders should be prepared for potential further declines.

*Disclaimer: Trading forex carries a high level of risk and may not be suitable for all investors. Ensure you fully understand the risks involved and seek independent advice if necessary.*