**EUR/USD Weekly Forecast: August 17–22, 2025**
*Based on the article by Ronit Prasad, originally published on DailyForex.com*
The EUR/USD currency pair posted notable moves in recent sessions, driven by macroeconomic factors spanning both the Eurozone and the United States. Traders assessing the broader economic outlook are increasingly eyeing central bank policy trajectories and economic performance indicators to navigate the evolving forex landscape.
Ronit Prasad’s original article on DailyForex.com presents a comprehensive look into EUR/USD projections for the week of August 17 to August 22, 2025. This expanded analysis extends his insights and builds a broader picture for traders and investors analyzing the cross-currency pair.
Below, we break down major influencing factors, chart trends, technical analysis details, and potential trading strategies for the upcoming week.
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## Recent Price Behavior and Market Context
The EUR/USD pair finished the previous week slightly higher, with price action continuing its recent bounce from key support levels. The pair had declined earlier due to dovish expectations surrounding the European Central Bank (ECB) and the robust performance of U.S. economic data, but staged a mild comeback after mixed U.S. inflation metrics tempered some hawkish Federal Reserve expectations.
Notable Recap from the Previous Week:
– The pair recovered from below the 1.0800 mark to finish at approximately 1.0880.
– End-of-week price action was driven by slight USD weakness across global markets.
– Technical support near 1.0760 held firm, acting as a key inflection point.
– Speculation around the ECB’s slower pace of tightening weighed on the Euro midweek.
– U.S. inflation data (CPI and PPI) showed softening prices, cooling market anticipation of further Fed hikes.
On a broader horizon, the Euro remains somewhat vulnerable due to uneven economic performance across Eurozone member states. Meanwhile, the U.S. economy continues to outperform expectations on labor market strength and consumer resilience.
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## Technical Analysis Overview
Charts highlight critical areas of interest for the EUR/USD pair. Here is a complete breakdown of bullish and bearish signals:
### Weekly Trend
– After dipping towards the 1.0750 area, the pair rebounded strongly back above 1.0850.
– The price now sits just below the 100-day EMA on the daily timeframe.
– Although the broader trend remains slightly bearish, the renewed bounce hints at potential upside retracement if upcoming data weakens the U.S. dollar further.
### Support and Resistance Levels
Key Zones to Watch:
– Immediate support near 1.0800 followed by deeper support at 1.0760 and 1.0700.
– Key resistance lies at 1.0900, followed by the psychological barrier of 1.1000.
– The 200-day moving average at approximately 1.0940 may act as long-term dynamic resistance.
Traders should be cautious of fake-outs around psychological levels, especially as data volatility can prompt brief but sharp reversals.
### Moving Averages
– The 50-day EMA has flattened, indicating reduced momentum.
– The current price sits just below the 100-day EMA, with the 200-day EMA acting as the next ceiling for bulls.
### RSI and Momentum Indicators
– The Relative Strength Index (RSI) is approaching neutral territory around 50, which suggests that buyers are regaining some control.
– MACD shows reduced bearish momentum after last week’s bounce.
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## Fundamental Drivers for the Upcoming Week
Several macroeconomic indicators and geopolitical developments are expected to drive EUR/USD fluctuations in the coming week.
### Eurozone Economic Outlook
While the European economy is avoiding recession, recent data signals stagnation:
– July’s industrial production in Germany showed minimal growth with signs of persistent weakness.
– Business climate indices remain subdued across key manufacturing economies.
– Inflation expectations have dipped, creating further pressure on ECB policymakers.
Implications:
– The ECB is likely
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