Title: In-Depth Technical Analysis of Major Forex Pairs: July 20–26, 2025
Original Source: DailyForex, authored by Chris Lewis
Original Article: https://www.dailyforex.com/forex-technical-analysis/2025/07/pairs-in-focus-20th-to-26th-july-2025/231420
As global economies navigate the headwinds of inflationary pressures, central bank tightening, and volatile commodity prices, traders must monitor the most influential Forex pairs. During the week of July 20–26, 2025, technical setups across key currency pairs are providing pivotal insights for medium and short-term strategies. Here’s a comprehensive breakdown of the current technical profiles for the US Dollar Index (DXY), EUR/USD, GBP/USD, USD/JPY, AUD/USD, NZD/USD, USD/CAD, and USD/CHF.
US Dollar Index (DXY)
The US Dollar Index, which measures the value of the dollar against a basket of other major currencies, remains the cornerstone for analyzing broader Forex sentiment.
Key Observations:
– The DXY is hovering near its highest levels in recent months, due to hawkish commentary from the Federal Reserve signaling possible rate hikes before the year’s end.
– The index has comfortably held above the 104.50 level, reinforcing the strength of US monetary policy relative to peers.
– Technical indicators suggest bullish momentum may continue:
– The Relative Strength Index (RSI) remains above the 60 mark, consistent with continued buying pressure.
– The 50- and 200-day Exponential Moving Averages (EMAs) are sloping upwards and provide dynamic support.
– Immediate resistance sits near 106.20, while support can be observed at 103.80 should prices retreat.
Fundamental Backdrop:
– Despite concerns over slowing job growth, US inflation indicators have remained sticky. The Core Personal Consumption Expenditures (PCE) Index, the Fed’s preferred inflation gauge, rose by 0.3 percent month-over-month in June.
– Safe haven flows, particularly after political instability in the Eurozone and ongoing tensions in the South China Sea, have also lifted demand for the greenback.
EUR/USD
The Euro remains under pressure as the European Central Bank holds steady while the Federal Reserve maintains its hawkish stance.
Technical Setup:
– EUR/USD has been trading in a bearish channel since mid-June, consistently registering lower highs and lower lows.
– Resistance levels to watch:
– 1.0900: Psychological barrier and 50-day EMA
– 1.1030: Downtrend line initiated in early May
– Support levels to monitor:
– 1.0800: Psychological and technical support reinforced by price action
– 1.0750: Year-to-date low, critical for trend continuation
– Daily RSI has begun to recover from oversold conditions, yet still sits below the neutral 50 level.
Macro Insight:
– Data out of Germany showed a slowdown in manufacturing output, dragging down the overall Eurozone GDP outlook.
– ECB President Christine Lagarde indicated that more data is needed before changing the interest rate trajectory, frustrating Euro bulls expecting a policy shift by September.
Trading Strategy:
– Favor short positions on rallies with tight stops above 1.0940 and targets near 1.0780.
– Breaks below 1.0750 could open room for a decline towards 1.0650 over the medium term.
GBP/USD
Sterling has been relatively stable, outperforming the Euro but lagging behind the US Dollar as the Bank of England walks a fine line between inflation control and avoiding recession.
Technical Overview:
– GBP/USD is approaching critical resistance near 1.3000, a zone that has capped rallies since mid-June.
– Support is currently found at:
– 1.2875: Intraday pivot and minor bullish trendline
– 1.2750
Read more on USD/CAD trading.