Forex Technical Major Pairs Analysis – August 22, 2025
Originally published by FXDailyReport.com
The foreign exchange market exhibited mixed sentiment on August 22, 2025, as traders continued analyzing global macroeconomic indicators, geopolitical developments, and central bank moves that influence currency pair dynamics. This technical analysis examines key major forex pairs, providing insight into current price action and potential future trajectories based on technical indicators.
Author: FXDailyReport.com
EUR/USD – Euro Faces Selling Pressure Below Key Resistance
The EUR/USD pair opened the trading day facing downward pressure as it struggled to break above its current resistance zone at 1.1000. The euro has been weighed down by disappointing economic data from the eurozone, along with continued investor caution amid uncertain macroeconomic outlooks.
Technical Overview:
– The 1.1000 level acts as a strong psychological and technical resistance
– Support is found at the 1.0800 level, followed by a lower support zone around 1.0680
– 20-day and 50-day exponential moving averages (EMA) are trending sideways, indicating range-bound momentum so far
– Relative Strength Index (RSI) is neutral, currently around the 50 threshold, with no clear directional bias
– A bearish crossover was recently noted on the Moving Average Convergence Divergence (MACD), suggesting limited bullish momentum ahead
Traders should monitor whether the pair forms a bullish breakout above 1.1000 to target 1.1200 next. However, if bearish sentiment prevails and price retreats below 1.0800, the next downside target may rest at 1.0680. The near-term bias remains neutral-to-bearish unless decisive momentum breaks this consolidation pattern.
GBP/USD – Sterling Trapped in Consolidation Phase
The British pound continues consolidating within a horizontal range against the US dollar, with bulls attempting to defend the 1.2700 support level. News out of the UK, especially regarding economic performance during the summer and anticipated monetary policy decisions by the Bank of England, have left traders in wait-and-see mode.
Technical Highlights:
– Short-term consolidation is defined between support at 1.2670 and resistance around 1.2850
– 20-day EMA sits just below the current spot price, while the 50-day EMA continues rising slowly
– RSI has remained stable between 45 and 55 for several sessions, indicating consolidation
– MACD histogram shows limited momentum, without signaling divergence or directional conviction
Key Levels to Watch:
– A break above 1.2850 would pave the way to retest the 1.3000 psychological level
– If price slips below the 1.2670 support, downside targets open at 1.2500 and then 1.2350
The bias remains neutral in the short term. Traders are advised to stay sidelined until a clearer breakout direction is established. Watch UK inflation reports and upcoming comments from Bank of England officials for catalysts.
USD/JPY – Dollar/Yen Approaches Key Resistance
After weeks of consistent bullish momentum, the USD/JPY pair continued climbing, testing the upper boundaries of its recent uptrend. Optimism around the US economy and the ongoing divergence between the Bank of Japan’s dovish stance and the Federal Reserve’s relatively hawkish tone has underpinned USD strength against the yen.
Technical Metrics:
– Price action remains within a strong bullish channel, testing resistance near 147.50
– Immediate support lies around 145.00, followed by a stronger level at 142.50
– The 20-day EMA continues sloping upward and sits below price, acting as immediate dynamic support
– RSI is in overbought territory, floating above 70, warning of potential exhaustion
– MACD shows continued bullish trend without signs of reversal, but with minor histogram flattening
Trading Recommendations:
– If the pair
Explore this further here: USD/JPY trading.