Certainly! Here is a rewritten, expanded version of the Forex article referenced above, aimed at providing detailed coverage of the topic with added information from credible sources. Credit is given to the original author (source: Mitrade; original link as posted).
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## EUR/USD Holds Steady as US Dollar Strength Pauses
*Credit: Adapted and expanded from Mitrade News, August 22, 2025*
### Overview
In the latest trading sessions, the EUR/USD currency pair has shown resilience, maintaining its footing despite the US dollar encountering a brief pause in its recent rally. The market observed Euro stability just above key support levels, as traders analyzed the latest developments on monetary policy, economic indicators, and the shifting global risk environment.
Several factors contributed to the current market sentiment, including a dip in US Treasury yields, anticipation ahead of central bank actions, and a series of economic reports from both the US and Eurozone. This article explores these drivers in detail, offers an outlook for the EUR/USD currency pair, and provides additional context regarding global currency markets.
### Recent Performance of EUR/USD
The EUR/USD currency pair is among the most actively traded in the world, serving as a barometer for the health of both the US and European economies. As of August 22, 2025, EUR/USD is trading marginally above the 1.0800 level, having found renewed buying interest following a period of sustained pressure.
#### Key Observations:
– The Euro had slipped lower earlier in the week, threatened by strong US economic data.
– However, a weaker-than-expected US services PMI and a slight pullback in Treasury yields helped halt the Dollar’s advance.
– The pair has been consolidating, with technical support at 1.0800 and resistance near 1.0900.
### Factors Influencing Recent Movements
#### Pause in US Dollar Strength
– After several weeks of gains, the US dollar rally paused.
– US Treasury yields have softened, reducing the yield advantage that previously fueled dollar buying.
– Risk appetite in global financial markets improved, encouraging investors to rotate out of the dollar and into riskier assets.
#### Central Bank Communications
– The Federal Reserve’s latest meeting minutes signaled a data-dependent approach, with several policymakers expressing concerns about overtightening.
– Lack of a firm commitment to more rate hikes provided relief to risk assets and weighed on the dollar’s momentum.
– Conversely, the European Central Bank (ECB) kept a cautious tone, acknowledging both upside inflation risks and signs of slowing growth.
#### Economic Data Releases
– US Services PMI fell short of expectations, indicating some loss of momentum in the service sector.
– Eurozone consumer confidence improved marginally, though concerns about manufacturing persist.
– Germany, the bloc’s largest economy, released mixed data, with industrial production stabilizing but retail sales showing uneven growth.
### Technical Analysis of EUR/USD
#### Support and Resistance Levels
– Immediate support for EUR/USD is located at 1.
Read more on AUD/USD trading.