EURUSD NEXT POSSIBLE MOVE

EURUSD

EUR/USD DAILY OUTLOOK - JAN 21, 2025**

**Market Pulse**
The EUR/USD pair is currently exhibiting a bearish trend, influenced by a strengthening U.S. dollar. This is largely due to increased market optimism about the U.S. economy under President Donald Trump's second term, with currency speculators holding the most bullish stance on the dollar since 2016.

**Key Levels**
- **Resistance:** 1.04180 (VWAP of January 7th), 1.03800 (Value Area Low of January 7th)
- **Support:** 1.03150 (Value Area Low of January 3rd), 1.02835 (Point of Control of January 1st)

**Technical Signals**
- **Trend:** The pair remains in a bearish trend, with the 20 EMA acting as a significant resistance level.
- **RSI:** The Relative Strength Index indicates selling pressure, aligning with the bearish outlook.
- **MACD:** The Moving Average Convergence Divergence suggests continued downward momentum.

**Global News Impact**
- **U.S. Dollar Strength:** Funds have started the Trump 2.0 era with the most bullish outlook on the dollar since 2016, driven by expectations of a stronger U.S. economy and higher interest rates.
- **Trade Policies:** President Trump's discussions on potential tariffs, including those on Canada and Mexico, have contributed to the dollar's rebound.

**Market Sentiment**
Despite the bearish technical indicators, market sentiment shows a mix of positions, with some traders anticipating potential rebounds.

**Trade Recommendation**
Given the prevailing bearish trend, a **sell** position is recommended.

- **Entry Point:** Around 1.0350, near the resistance level.
- **Take Profit (TP):** 1.0280, aligning with the support level.
- **Stop Loss (SL):** 1.0385, just above the resistance to mitigate risk.

**Risk Management**
This setup offers a favorable risk-reward ratio. Ensure that your position size aligns with your risk tolerance and account management strategy.

**Conclusion**
The EUR/USD pair is currently under bearish pressure due to a strengthening U.S. dollar and market optimism about the U.S. economy. Technical indicators support a sell position, with key levels identified for entry, take profit, and stop loss.

*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.*