**EUR/USD Attempts a Limited Recovery Amid Ongoing Bearish Pressure**
*Adapted from an original analysis by Economies.com, published on August 12, 2025*
The EUR/USD currency pair entered Monday’s trading session attempting to regain some of its recent losses, exhibiting marginal positive sentiment after a succession of bearish sessions. While the pair showed signs of consolidation early in the day, it remains under significant downward pressure due to dollar strength and macroeconomic uncertainty in the eurozone. This report provides a detailed analysis of the EUR/USD pair’s performance, technical outlook, influencing factors, and projections for the coming period, as derived from the original analysis by Economies.com.
## Current Market Overview
Following a sharp decline in the previous week, the pair opened Monday with slight gains but struggled to sustain upward momentum. The temporary rise in the EUR/USD rate is not yet a clear indication of a reversal, and many traders and analysts continue to observe bearish sentiment prevailing in the near term.
– The pair started the session around the 1.0920 level.
– It showed an early intraday push upward but failed to break above key resistance levels.
– Selling pressure remains apparent, with traders seemingly capitalizing on minor rallies to re-enter positions at better prices.
## Technical Analysis
The latest movement of the EUR/USD pair affirms the existing bearish trend. Technical indicators suggest more downside potential unless critical resistance levels are overcome in the short term.
### Support and Resistance Levels
– **Immediate Support:** The key support zone remains situated around the 1.0870 level. A break below this level could fuel additional selling pressure, potentially taking the pair closer to its next major support at 1.0800.
– **Major Resistance:** On the upside, the nearest resistance stands at 1.0950, followed by more significant resistance near the 1.1000 psychological level.
### Moving Averages
– The 50-period Simple Moving Average (SMA) continues to decline and acts as dynamic resistance.
– The price is well below both the 50-period and 100-period SMAs, signifying sustained short-term and medium-term bearish momentum.
### RSI and Momentum Indicators
– The Relative Strength Index (RSI) remains below the 50 mark, pointing to continued bearish enthusiasm.
– Momentum indicators also remain in negative territory, offering little confirmation of a trend shift.
## Price Action Highlights
– Over the past week, EUR/USD lost over 150 pips amid persistent dollar strength.
– Friday’s session established a new short-term low around 1.0870 before some stabilization took place.
– Monday’s early rebound appears more technical in nature, as bears take profit and short-term traders seize retracement opportunities.
## Primary Factors Influencing the Pair
The EUR/USD rate is being held in check by a complex interplay of technical and fundamental variables. Below are the key drivers currently impacting market sentiment and direction.
### 1. Dollar Strength
One of the most significant bearish pressures on the pair originates from consistent US dollar strength. The dollar remains firm across major markets due to:
– Hawkish stance by the Federal Reserve amid sticky inflation.
– Strong US jobs data, including lower-than-expected unemployment figures and rising wage inflation.
– Renewed appetite for safe-haven assets driven by geopolitical risk and concerns regarding slowing global recovery.
### 2. Eurozone Economic Weakness
Data emerging from the euro area continues to offer little encouragement to euro bulls.
– Germany, the eurozone’s largest economy, has seen disappointing industrial production and manufacturing PMI figures.
– Inflation across the eurozone remains subdued, which might limit the European Central Bank’s (ECB) willingness to tighten further.
– Persistent fiscal concerns in Southern Europe have revived worries over eurozone cohesion.
### 3. Divergence in Monetary Policy
– The Federal Reserve maintains a hawkish tone, suggesting more rate hikes may be necessary if inflation persists.
– Contrarily, the ECB has shown signs of cautious policy-making
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