EURUSD NEXT POSSIBLE MOVE

EURUSD
As of February 4, 2025, the EUR/USD pair is experiencing significant volatility, primarily due to recent geopolitical developments, including the U.S. administration's imposition of tariffs on imports from Mexico, Canada, and China. These actions have led to heightened market turbulence and a notable decline in the euro.

**Technical Overview:**

- **Current Price:** 1.0277
- **Resistance Levels:** 1.0300, 1.0350
- **Support Levels:** 1.0200, 1.0150

**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 prevailing bearish momentum, initiating a **buy** position carries significant risk. 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.*