**Major Forex Pairs Technical Analysis for August 22, 2025**
Credit: Daffa Zaky, FXDailyReport.com
As the global financial landscape continues to shift, traders and investors are keeping a close watch on the forex market for potential opportunities. The main currency pairs, including EUR/USD, GBP/USD, AUD/USD, and USD/JPY, have experienced fluctuations in recent sessions, primarily influenced by evolving economic fundamentals, central bank policies, and varying risk sentiment. In-depth technical analysis helps navigate these tides by providing insights into key levels and likely market trajectories.
This comprehensive analysis, drawing from the original work by Daffa Zaky on FXDailyReport.com as well as insights from other reputable sources, offers a detailed outlook on the major forex pairs for August 22, 2025.
—
### EUR/USD: A Struggle for Direction
– **Current Position**: The EUR/USD pair continues its sideways trajectory, exhibiting low volatility with a moderately bearish bias. The pair has been struggling to gain upward momentum as both the US dollar and euro respond to diverging monetary policies.
– **Recent Price Movement**: After testing key support levels at 1.0800, EUR/USD bounced but has not broken above critical resistance near 1.0900. Sellers remain active at higher levels, particularly around the 1.0880 to 1.0900 resistance zone.
– **Technical Indicators**:
– The 50-day Simple Moving Average (SMA) is slightly above the current price, acting as dynamic resistance.
– The Relative Strength Index (RSI) threatens to move below 50, indicating rising bearish momentum.
– **Key Levels**:
– *Resistance*: 1.0900, followed by 1.0950.
– *Support*: 1.0800, then 1.0750.
– **Fundamental Drivers**:
– The Federal Reserve’s policy trajectory remains hawkish, with robust US economic data supporting the dollar.
– The European Central Bank, in contrast, has shown reluctance in tightening further, keeping pressure on the euro.
– **Short-Term Outlook**:
– Unless EUR/USD can confidently break above 1.0900, the path of least resistance remains to the downside.
– A decisive drop below 1.0800 could open the way for a move toward the 1.0700 level.
– **Trader Considerations**:
– Keep an eye on US Core PCE and upcoming ECB statements for clues on further price action.
– Short-term strategies may favor selling rallies near resistance, while stops should be considered above 1.0950 for prudent risk management.
—
### GBP/USD: Sellers Hold Firm
– **Current Position**: GBP/USD remains under clear downward pressure, failing to regain ground above 1.2700. The British pound’s weakness has intensified due to softer economic indicators and a dovish tilt by the Bank of England
Read more on AUD/USD trading.