**Forex Technical Analysis of Major Pairs: August 22, 2025**
*Adapted & Expanded from original analysis by Ahmad Hassam on FXDailyReport.com*
As traders continue to assess shifting monetary policies and macroeconomic data, the global foreign exchange market remains dynamic. The U.S. Dollar, Euro, Pound Sterling, and Japanese Yen all show significant movement against each other, spurred by ongoing economic adjustments and geopolitical influences. This article provides an in-depth technical analysis of the major currency pairs as of August 22, 2025. All original observations by Ahmad Hassam for FXDailyReport have been maintained and expanded upon with further market context.
—
## EUR/USD: Trading Near a Key Range
The EUR/USD pair has experienced mixed momentum recently, reflective of diverging monetary policy paths from the European Central Bank (ECB) and the U.S. Federal Reserve. This week, the pair consolidates near a critical price band, attempted to break above the 1.1000 psychological level, but encountered selling pressure.
### Technical Overview
– *Recent Trend*: The EUR/USD is moving sideways, fluctuating between support at 1.0850 and resistance at 1.1000.
– *Indicators*:
– **Movers**: The 50-day Simple Moving Average (SMA) has flattened, indicating decreased momentum.
– **Relative Strength Index (RSI)**: Oscillates near the neutral 50 level, suggesting a lack of clear trend and potential for breakout upon news events.
– **MACD**: The Moving Average Convergence Divergence sits just above the zero line, signaling a cautiously bullish environment but with little conviction.
– *Chart Patterns*: Candlesticks show indecision with doji formations near resistance.
### Macro Context
– The ECB’s statements have been cautious due to continued inflationary pressures and tepid growth.
– Federal Reserve officials maintain a hawkish tone, preferring to keep rates steady unless inflation falls meaningfully.
### What to Watch For
– A breakout above 1.1000 may trigger a rally towards 1.1100 and 1.1200.
– Slide below 1.0850 opens route to previous lows near 1.0700.
– Key data releases, such as Eurozone PMI and U.S. Non-Farm Payrolls, could serve as catalysts.
#### Trading Strategies:
– Range traders may consider buying near the lower boundary with a close stop, selling at resistance.
– Momentum traders should monitor for stronger directional moves post-economic releases.
—
## GBP/USD: Persistent Downside Risk
The Pound Sterling continues to face headwinds against the U.S. Dollar. Since July, GBP/USD has trended lower, reflecting a combination of weaker UK data and resilient U.S. economic reports. The pair currently tests support near the 1.2630 area, where buyers have previously emerged.
### Technical Overview
– *Recent Trend*: Bearish momentum dominates
Read more on AUD/USD trading.