EUR/USD Forex Signal: Euro Establishes Bullish Footing as Momentum Builds
By: DailyForex.com, original analysis by Adam Lemon
The EUR/USD currency pair displayed steady bullish momentum on August 19, 2025, suggesting potential upward continuation provided favorable technical conditions persist. The latest forex signal analysis, originally published by Adam Lemon for DailyForex.com, outlines key support and resistance levels, along with strategic recommendations for traders aiming to capitalize on the euro’s recent strength.
Market Context: Bullish Momentum Solidifies
During the recent New York session, the EUR/USD pair advanced to test higher levels, buoyed by risk-on sentiment and weakening demand for the US dollar. The rally represents a continuation in buyer confidence following a period of consolidation within a defined technical range.
Several macroeconomic and technical factors have contributed to the euro’s rise:
– Diminishing expectations of additional tightening by the Federal Reserve, leading to reduced demand for USD.
– Speculation around an economic pick-up in the Eurozone after a period of stagnation.
– Stable inflation readings within the European Union, promoting investor confidence.
– A modest uptick in global equity markets supported risk appetite, generally a positive for EUR/USD.
Key Resistance and Support Levels
As outlined in Adam Lemon’s analysis, traders must watch several crucial price levels:
Resistance levels:
– 1.0992: The high from earlier in August, representing a key technical barrier.
– 1.1040: A prior swing high and psychological round number offering resistance if bullish momentum continues.
– 1.1078: A longer-term resistance level, possibly indicative of a breakout zone if reached with high volume.
Support levels:
– 1.0911: The recent swing low and immediate support if price pulls back from recent highs.
– 1.0879: A short-term bullish structure low offering additional support.
– 1.0836: A former resistance turned support level, acting as a key measure of bearish control.
Trading Strategy Summary for August 19, 2025
Adam Lemon’s signal offers clear potential entry and exit strategies depending on how the market unfolds near identified zones. Here’s a summary of the strategy detailed in the DailyForex article:
– Buy signal if price breaks decisively above 1.0992 with strong momentum, suggesting continued bullish pressure toward 1.1040 or 1.1078.
– Consider a buy limit or pending long position on a confirmed bullish price action reversal from 1.0911, using tight stop-loss for risk management.
– Sell signal only becomes viable if price breaks and holds below 1.0911 with bearish confirmation, likely targeting 1.0879 or deeper.
Trading Tips:
– Wait for candlestick confirmations, such as bullish engulfing or pin bars, especially near 1.0911 support or 1.0992 resistance.
– Volume and volatility indicators such as ATR and Bollinger Bands can confirm strength or weakness near key levels.
– Use smaller timeframes (M30 or H1) to refine entries within larger setups on the H4 or daily charts.
Recent Technical Developments
Over the past week, the pair formed a higher-low bullish structure supportive of the ascending trend, with notable developments including:
– A breakout from the minor descending trendline established within the early August pullback.
– RSI approaching overbought territory, indicating potential exhaustion but also evidence of strength.
– Moving averages such as the 20 EMA crossing above the 50 EMA on the 4-hour chart, signaling near-term bullish consensus.
Traders should monitor the evolution of this structure. If momentum remains intact, a breach above 1.0992 will carry the pair toward more ambitious upside targets.
Volatility Outlook and Risk Events
Fundamental risks remain for both currencies. Key events that could influence the EUR/USD trajectory in the days following August 19 include:
For the euro:
– Eurozone economic sentiment index release
– Industrial production reports from Germany and France
Read more on EUR/USD trading.