**EUR/USD Weakens Amid Strong Resistance Levels: Technical Analysis Update**
*Original Analysis by Economies.com | Published July 23, 2025*
The EUR/USD currency pair continued its downward trend on Tuesday, July 23, 2025, as it faced solid resistance that prevented further bullish movement. After a brief attempt to retest the upper barrier, the pair remained under strong selling pressure. This downward momentum aligns with the ongoing negative sentiment surrounding major global currencies and the renewed strength in the U.S. dollar. Below is an in-depth technical analysis based on the original research published by Economies.com.
## Overview of Current EUR/USD Market Behavior
The euro stumbled against the U.S. dollar due to increased bearish sentiment and technical resistance levels that limited the pair’s upward potential. Despite early attempts to regain ground, the euro failed to breach a key resistance zone and has since retreated toward support zones. The technical indicators suggest that further losses may be likely in the short term unless momentum shifts considerably.
## Key Technical Highlights
– **Resistance Barrier**: A solid barrier near the 1.1280 level has played a pivotal role in halting upward progress. This level has previously acted as a strong ceiling, where traders have placed significant sell orders.
– **Support Levels**: On the downside, the currency pair neared key support zones at 1.1150 and 1.1120. The lower end of this range may become a critical pivot point in the coming sessions.
– **Trend Direction**: The pair continues to move within a descending price channel, indicating a negative bias for now.
– **50-Day EMA**: The exponential moving average (EMA) for 50 days remains above the current price, supporting the bearish narrative.
– **Momentum Oscillators**: Indicators such as the Relative Strength Index (RSI) have been hovering close to oversold levels but have not yet flashed reversal signals.
## Technical Chart Analysis
The EUR/USD combination has seen volatile swings as traders rely heavily on technical levels, given the uncertainty in macroeconomic indicators. The pair’s failure to hold above the 1.1250 mark indicates resistance pressure, which may persist over the coming days. A descending channel layout on the 4-hour chart shows the price retreating after testing the upper boundary.
### Indicators Supporting Bearish Signals
Several technical indicators support the decline:
– **Relative Strength Index (RSI)**: Hovering below the 50 mark, suggesting weaker bullish momentum and an inclination toward short-term bearish control
– **MACD**: The Moving Average Convergence Divergence (MACD) histogram has crossed below the zero line, signaling negative movement expansion
– **Candlestick Patterns**: Recent bearish engulfing candles reinforce the downside inclination and validate the resistance strength near the 1.1280 level
## Trading Volumes and Market Sentiment
Volume indicators reveal decreased buying activity compared to previous sessions. This slowdown in bullish strength creates an imbalance of power favoring the bears. Intraday sentiment across Forex platforms shows that the majority of retail traders have taken short positions in anticipation of further depreciation in the pair’s value.
Large institutional positions, on the other hand, appear to remain cautious, as evident from tight spreads and moderate open interest on EUR/USD futures contracts. These institutional behaviors reflect a “wait-and-see” approach, likely driven by upcoming macroeconomic data releases.
## Economic Factors Impounding EUR/USD
The broader macroeconomic landscape has added additional weight on the EUR/USD pair. Below are major economic considerations impacting price movements:
– **U.S. Dollar Strength**: Renewed interest in the dollar, fueled by upcoming Federal Reserve policy decisions, has led to increased greenback demand.
– **Eurozone Growth Concerns**: Recently released weak eurozone PMI figures have raised concerns about economic stagnation in major European economies like Germany and France.
– **Inflation Trends**: Lower-than-expected inflation readings in the eurozone have further dampened
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