Hello traders, we have come with a forex trading analysis on the EURUSD market. Let’s move on to the analysis.

EURUSD Technical Analysis: Market Reacts to Political Uncertainty

The EURUSD pair has experienced a sharp drop, influenced by political uncertainty surrounding Trump’s latest news, which unsettled the markets. This has resulted in a significant gap down, raising questions about whether the pair will recover or continue its downward trajectory.

Key Technical Levels & Trading Plan

📉 Current Market Structure:

• The EURUSD gap has created a potential magnet effect, as price often attempts to fill gaps before deciding its next move.
• Currently, the pair is trading near the 1.0240–1.0250 support zone, which could act as a reversal area if buyers step in.

📍 Support & Resistance:

• Support: 1.0240–1.0250 (Key level for potential buy entries)
• Resistance: 1.0300 (First target) & 1.0350 (Major resistance)

📈 Trade Idea: Buy on Consolidation Above 1.0250
🔼 Bullish Scenario:

• If price holds above 1.0250, it may attempt to close the gap and rally toward 1.0300 as the first target.
• A continuation move could extend the bullish momentum to 1.0350, aligning with previous resistance zones.

⚠️ Risk Management:

• Stop-loss: Below 1.0200, in case of further downside pressure.
• Trade confirmation: Look for a bullish structure or candlestick pattern before entering.

Fundamental Factors Affecting EURUSD

📊 Trump-Related Uncertainty:

• Market volatility has increased following news about Trump, leading to a risk-off sentiment in the markets.
• If uncertainty persists, USD strength may continue, applying pressure on EURUSD.

💵 US Dollar Strength & Federal Reserve Policy:

• The US Dollar is gaining strength due to safe-haven demand, but upcoming Fed comments could shift sentiment.
• If Fed signals dovish policy, we may see EURUSD recovery as the USD weakens.

📈 Eurozone Economic Outlook:

• Traders should monitor economic data from the Eurozone, including inflation and GDP figures, to gauge strength in the Euro.

Final Thoughts: Will EURUSD Fill the Gap?

The market is at a critical decision point, and traders should closely watch the 1.0250 level for confirmation of a potential reversal.

💬 What’s your take on EURUSD? Do you think the pair will bounce back or continue to decline? Drop your thoughts below! 🚀🔥