**Forex Technical Analysis of Major Pairs: July 25, 2025**
*Based on content by Henry Fornells at FXDailyReport.com, additional insights incorporated from recent market studies.*
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The global foreign exchange market is witnessing heightened volatility in the summer of 2025. Major currency pairs, influenced by shifting economic policies, global events, and central bank announcements, are showing technical signals that traders need to interpret carefully. This in-depth analysis covers the latest chart patterns, price action, key support and resistance levels, alongside macroeconomic drivers for top forex pairs including EUR/USD, GBP/USD, AUD/USD, USD/JPY, and USD/CAD.
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### Market Overview: Factors Driving Forex Moves
Several fundamental themes underlie recent forex market movements:
– **Monetary Policy Divergence**: Differing stances by the Federal Reserve, European Central Bank, Bank of England, and other major central banks continue to reshape currency valuations.
– **Economic Growth Prospects**: GDP figures, employment data, and inflation trends are impacting risk sentiment and capital flows.
– **Geopolitical Uncertainty**: Ongoing trade negotiations and regional conflicts add a layer of caution in the FX landscape.
– **Commodity Price Fluctuations**: Shifting prices in oil, metals, and agricultural goods influence commodity-linked currencies such as the Australian and Canadian dollar.
– **End-of-Quarter Positioning**: Portfolio realignment by institutions brings extra volatility and liquidity into major currency pairs.
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## Technical Outlook by Major Pair
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### EUR/USD: Testing Resistance Amid Shaky Recovery
The euro-dollar pair remains a focal point in the forex market as investors gauge the eurozone’s growth outlook against US economic resilience.
**Recent Price Action & Levels:**
– The pair recently staged a bounce from the 1.0700 support zone, but faces stiff resistance at 1.0900 and the psychological 1.1000 barrier.
– Daily charts show that EUR/USD has formed a modest series of higher lows, a sign of gradual bullish momentum in the short term.
– The 50-day moving average is acting as initial dynamic resistance, while the 200-day moving average is flattening, reflecting market indecision.
**Key Technical Signals:**
– **Support Zones**: 1.0700, followed by the 1.0630 region. A clear break below these levels could prompt a move toward 1.0500.
– **Resistance Barriers**: The 1.0900 and 1.1000 marks are critical. Only a sustained break above 1.1000 would put 1.1200 in play.
– **Chart Patterns**: Emerging bullish divergence on the Relative Strength Index (RSI) suggests momentum is building, but there is risk of sharp reversals given macro uncertainty.
**Fundamental Drivers:**
– Market participants await guidance from the European Central Bank, which remains cautious in its approach to interest rates in
Read more on AUD/USD trading.