EURUSD NEXT POSSIBLE MOVE

EURUSD

As of January 22, 2025, here's the latest analysis for the EUR/USD currency pair:

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### **EUR/USD DAILY OUTLOOK - JAN 22, 2025**

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**Market Pulse**
The EUR/USD pair is experiencing a bearish trend, influenced by a strengthening U.S. dollar. Currency speculators have adopted the most bullish stance on the dollar since 2016, driven by expectations of a stronger U.S. economy and higher interest rates under President Donald Trump's second term.

**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.*