**Forex Technical Analysis: Major Currency Pairs Overview (As of August 8, 2025)**
*Based on analysis from FX Daily Report; Additional insights incorporated for broader perspective*
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The forex market presents a dynamic landscape where global economic news, technical levels, and geopolitical events converge to direct the movement of major currency pairs. As traders navigate this complex environment, technical analysis remains a key tool to anticipate potential market moves. Below, you’ll find a comprehensive examination of major forex pairs as of early August 2025, integrating analysis originally published by FX Daily Report and complemented with further market insights from other reputable sources.
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### EUR/USD: In the Wake of Central Bank Divergence
– **Current Overview**
– The Euro vs US Dollar has faced increased volatility recently. This is primarily due to diverging monetary policies between the European Central Bank (ECB) and the US Federal Reserve.
– At the time of analysis, the EUR/USD pair is trading near its support levels, with bears attempting to push the price further down. Resistance remains firmly capped amid hawkish stances by the Federal Reserve.
– **Key Chart Levels**
– Support: 1.0800, with a secondary floor at 1.0750
– Resistance: 1.0935, followed by 1.1000
– **Technical Indicators**
– The pair continues to form lower highs and lower lows on the daily chart, indicating ongoing bearish sentiment.
– Relative Strength Index (RSI) is approaching 40, teetering between neutral and slight bearish conditions.
– Moving Averages: The pair is hovering below both its 50-day and 200-day Simple Moving Averages, signaling continued bearish momentum.
– **Fundamental Drivers**
– July’s US jobs report was stronger than expected, fueling US Dollar strength.
– The ECB’s cautious stance, stemming from softening economic data in the Eurozone, reduces the Euro’s appeal.
– Investors are closely watching inflationary trends and central bank communications for clues on future rate moves.
– **Trade Strategy**
– Watch for a sustained break below 1.0800 for confirmation of further bearish extension toward 1.0750.
– Only a decisive move above 1.0935 would hint at bullish reversal potential.
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### GBP/USD: Sterling Holds Ground Amid Mixed Sentiment
– **Current Overview**
– The British Pound remains resilient against a broadly strong US Dollar.
– GBP/USD is trading sideways following the Bank of England’s cautious guidance at its August meeting.
– **Key Levels**
– Support: 1.2700, with strong buyers anticipated near 1.2620
– Resistance: 1.2820, next at 1.2900
– **Technical Indicators**
– The price has established a tight trading range, with neither bulls nor bears taking clear control.
– MACD remains neutral, while the
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