**EUR/USD Evening Analysis Update – August 12, 2025**
*Original analysis by Economies.com*
The EUR/USD pair continued its sideways movement during Tuesday’s trading session, maintaining a tight range after an earlier decline. As highlighted in the original analysis by Economies.com, the Euro showed signs of potential bullish intent, although faced with overhead resistance and market indecision. In this extended evening update, we delve deeper into price action, upcoming technical levels, fundamental factors shaping market sentiment, and projections for the near term.
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## Overview of Current Trends
– The EUR/USD pair moved steadily within a rangebound channel during intraday trading on August 12, 2025.
– A mild recovery was seen after the pair neared the 1.0900 level, but the gains were capped below 1.0950.
– Technical indicators suggest a slightly positive bias, though without strong momentum.
– Short-term resistance remains firm around the 1.0950–1.0970 zone.
– Bearish pressure from the U.S. dollar could reemerge, especially with upcoming data announcements.
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## Technical Breakdown
### Price Action Analysis
– The EUR/USD showed mild corrective gains following a dip to near 1.0905 in the European session.
– Sellers have been more dominant since the rejection from last week’s highs near 1.1040.
– Despite repeated attempts, the Euro has failed to break above the 1.0950 resistance on several occasions, suggesting a strong ceiling in the short term.
### Key Support and Resistance Levels
**Immediate Resistance:**
– 1.0950: A psychological barrier and technical pivot that has restrained upward movements over the past 72 hours.
– 1.0975–1.0980: Marked by previous highs and Fibonacci retracement zones; further selling pressure is expected here if this level is tested.
**Immediate Support:**
– 1.0905: Acts as the initial support line and was tested during today’s session.
– 1.0880: A stronger support zone reinforced by horizontal price structure and recent consolidation patterns.
– 1.0855–1.0840: Represents the lower boundary of the recent sideways channel and would be a bearish signal if broken.
### Moving Averages
– The 50-period Moving Average on the 4-hour chart is flatlining near 1.0940, indicating further neutral bias in the market.
– The 100-period Moving Average on the daily chart lies closer to 1.0880, aligning with deeper support.
– The 200-day Moving Average remains well below the current price action, indicating that the longer-term uptrend is still intact.
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## Technical Indicators
**Relative Strength Index (RSI):**
– Currently hovers near 48 on the 4-hour chart, reflecting a lack of momentum and neutral bias.
– RSI values below 50 denote slight bearish sentiment, but not decisively in oversold territory.
**MACD Oscillator:**
– Signal lines are beginning to show convergence on the 1-hour chart.
– A potential bullish crossover could indicate a short-term rebound if confirmed in higher timeframes.
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## Fundamental Factors Influencing the Pair
The technical behavior of the currency pair must be understood in the context of macroeconomic developments and fundamental data impacting both the Euro and the U.S. dollar.
### US Dollar Dynamics
– Recent strength in the U.S. dollar is backed by hawkish rhetoric from several Federal Reserve officials.
– Market participants continue to price in a possibility of another 25 basis point hike before year-end, depending on inflation metrics and employment data.
– The upcoming U.S. Consumer Price Index (CPI) report later this week is expected to add volatility to the EUR/USD pair.
– Treasury yields have ticked higher, supporting the Greenback and limiting upside in risk-assets such as the Euro.
### European Economic Indicators
– The Eurozone’s economic
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