**Forex Technical Analysis: Major Pairs Overview – July 21, 2025**
*Adapted and expanded from an article by Syaiful S, FXDailyReport.com*
The forex market continues to reflect the evolving dynamics of the global economy, impacted by factors like monetary policy, shifting risk sentiment, inflation expectations, and geopolitical developments. As traders monitor macroeconomic indicators and central bank commentary, major currency pairs such as EUR/USD, GBP/USD, USD/JPY, USD/CAD, AUD/USD, and USD/CHF exhibit significant technical setups on their respective charts that can provide actionable insights for trading strategies in July 2025.
Below is a thorough technical analysis of these major forex pairs, informed by both the original content from Syaiful S of FXDailyReport.com and insights cross-referenced from reputable sources like Investing.com and DailyFX.
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### EUR/USD: Consolidation Continues Amid Mixed Signals
The EUR/USD pair has experienced a consolidation phase since the beginning of July, trading within a relatively tight range as market participants weigh the divergent monetary policies between the Federal Reserve and the European Central Bank (ECB).
**Key Technical Points:**
– **Support and Resistance Levels:**
– *Immediate support:* 1.0850; a sustained break below this could expose the pair to deeper losses toward 1.0800.
– *Immediate resistance:* 1.0975; this level marks the upper boundary of recent consolidation. A daily close above 1.0975 could trigger a move toward 1.1050.
– **Moving Averages:**
– The pair remains slightly above the 50-day simple moving average (SMA), suggesting a neutral-to-slightly bullish bias unless support is breached.
– **Indicators:**
– Relative Strength Index (RSI) hovers near the midline, reflecting the lack of strong momentum in either direction.
– MACD shows flat momentum, confirming a period of indecision.
– **Chart Patterns:**
– The daily chart reveals a potential pennant or flag formation, which generally signals impending volatility once a breakout occurs.
– **Catalysts to Watch:**
– Eurozone PMI data, inflation readings, and any hawkish/dovish signals from the ECB.
– US economic releases and Federal Reserve commentary.
**Near-Term Strategy:**
Range-bound trading might persist until a decisive break above 1.0975 or below 1.0850 occurs. Traders can look for confirmation via volume and candlestick patterns before entering positions.
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### GBP/USD: Testing Recovery After Reversal
GBP/USD witnessed a moderate recovery in recent sessions, rebounding from multi-week lows amid shifting expectations on the Bank of England’s (BoE) interest rate trajectory.
**Key Technical Points:**
– **Support and Resistance Levels:**
– *Primary support:* 1.2750; a loss here could see the pair revisit 1.2650.
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Read more on AUD/USD trading.