Evening Update for EUR/USD – August 22, 2025
Original source: Economies.com
Author: Mahmoud Abu Ghosh
URL: https://www.economies.com/forex/eur-usd-analysis/evening-update-for-eurusd–22-08-2025-120551
The EUR/USD currency pair continued to show a bearish path during Friday’s evening trading session. The pair remained under significant downward pressure, reinforcing the expectations for an ongoing bearish correction after failing to break any key resistance levels during the previous sessions. This updated analysis explores critical price levels, technical indicators, and projected trajectory for EUR/USD traders heading into next week.
1. Price Action Overview
– The EUR/USD pair extended its decline after failing to maintain support above the 1.0900 level earlier in the week.
– The price recorded fresh lows near the 1.0840 region by the late European session on Friday, intensifying concerns of further bearish momentum in the near term.
– Despite minor intraday bounces, upside corrections remained insignificant, and sellers largely dominated market sentiment going into the US session.
2. Technical Indicators
– The 50-period Exponential Moving Average (EMA50) continues to act as a major resistance level on the hourly and H4 charts, reinforcing the bearish trend and restricting any significant bullish correction.
– The Relative Strength Index (RSI), which had initially dipped below the 30 level, has since corrected slightly. However, it still points to strong selling momentum.
– Momentum oscillators remain skewed toward the downside, indicating that the selling trend is not yet exhausted.
– Stochastic indicators also signal a continuation of the bearish trajectory, consistently remaining in oversold territory through Friday’s trading.
3. Trend Analysis
– On a broader time frame, the EUR/USD pair has been trading within a descending channel, indicating a medium-term bearish bias for the currency pair.
– Previous attempts to break out of this bearish channel failed, and the price has confirmed multiple rejections from the upper boundary of the channel.
– The lower highs and lower lows on the daily chart suggest that the bearish trend remains firmly established and that any recovery attempts may be short-lived unless accompanied by a fundamental catalyst.
4. Resistance and Support Levels
A clear understanding of key support and resistance levels is vital to interpreting trader sentiment and potential price reversals.
Key Resistance Levels:
– 1.0895: Previous horizontal resistance and psychological level. A break above this could temporarily open the path toward 1.0940.
– 1.0940: The next resistance zone where strong selling pressure is expected to reappear.
– 1.0990–1.1000: A significant resistance band marking the upper limit of the recent trading range. A breakout above this range could indicate a possible shift in trend.
Key Support Levels:
– 1.0840: The immediate intraday support and current local low. A breakdown below this will likely trigger further selling activity.
– 1.0800: A crucial psychological support level. Traders are expected to watch this level closely.
– 1.0745: The next major downside target if bearish momentum continues, representing a level of historical demand from previous months.
5. Fibonacci Retracement Analysis
Analyzing the latest downward movement using Fibonacci tools:
– The pair has retraced more than 61.8% of the prior bullish impulse that occurred between 1.0730 and 1.1040.
– The 38.2% Fibonacci retracement (located at approximately 1.0890) is now acting as resistance.
– Continued failure to recover beyond this retracement zone would signify weakness and potential for an extended correction.
– Bears may target the 78.6% level, which lies near the 1.0765 region.
6. Volume Analysis
– Lower trading volumes during the European session were followed by slightly increased activity in the American session, suggesting participation from US
Read more on EUR/USD trading.