This article is a rewritten version of the original analysis by Adam Lemon, published on DailyForex.com on July 24, 2025. The content has been reformatted and expanded to reach a minimum of 1,000 words, with additional technical insights and elaboration while retaining the core analysis. Full credit to the original author is preserved.
EUR/USD Forex Signal Analysis – July 24, 2025
By Adam Lemon
Original Source: DailyForex.com
Overview
The EUR/USD currency pair continues to show signs of bearish pressure as recent market activity indicates a strong preference for the U.S. dollar. Amid growing investor speculation surrounding upcoming Federal Reserve policy decisions, the pair has been sliding within a defined resistance zone and now appears to be seeking support levels in the lower 1.08 region.
The recent economic backdrop supports the dollar’s strength as inflation metrics continue to challenge the European Central Bank’s ability to stimulate growth in the eurozone. Meanwhile, an improved labor market and consumer sentiment in the United States are giving investors more confidence to hold dollar-denominated assets. As a result, the euro struggles to maintain traction, particularly during periods of dollar strength.
Below is a comprehensive breakdown of the technical and fundamental posture of EUR/USD as of July 24, 2025, along with actionable trading signals for intraday traders.
Current Market Environment
– The EUR/USD has recently declined into a significant support area near the 1.0800 psychological level.
– Downward movement persists within a broader consolidation zone, although new directional moves could surface depending on further macroeconomic catalysts.
– The Federal Reserve maintains a hawkish stance, which supports U.S. dollar strength.
– The pair is affected by the divergence in monetary policy between the Federal Reserve and the European Central Bank.
Key Technical Indicators
1. Moving Averages
– The 50-period simple moving average (SMA) on the hourly chart has acted as dynamic resistance, consistently rejecting bullish attempts above 1.0850.
– The 200-period SMA remains well above, indicating a longer-term bearish setup.
– Price action below both moving averages confirms bearish momentum.
2. Relative Strength Index (RSI)
– RSI on the 4-hour chart has oscillated between 30 and 50, which confirms the lack of buying momentum.
– No bullish divergence has formed, pointing to the potential of continued downside pressure in the short term.
3. Support and Resistance Levels
– Key support: 1.0800 (psychological level) and 1.0780 (multi-session swing low).
– Key resistance: 1.0832 (recent local high) and 1.0870 (breakdown structure and upper consolidation boundary).
– Price is currently trapped in a descending channel, and only a break above 1.0880 would signal a potential reversal.
Daily Technical Conclusion
From a daily perspective, the EUR/USD pair is locked in a technical downtrend that is reaffirmed by failure to reclaim the 1.0900 zone. The overall direction suggests favoring short trades toward support levels rather than attempting to catch temporary upward corrections. However, any significant deviation in U.S. data or dovish statements from the Fed could cause sharp intraday reversals.
Intraday Signal Strategy for July 24, 2025
The following trading signals and setups provide guidance for short-term (scalping or day trading) strategies. These signals are based on the current behavior of the pair and technical momentum unfolding through various time frames.
Trade Ideas
1. Long Trade Setup
– Entry trigger: Buy on a strong bullish reversal at 1.0780 with confirmation (pin bar or bullish engulfing candle) on the 15-minute chart.
– Stop-loss: 1.0745 (35 pips below entry).
– Take-profit target: 1.0832 initially, with a partial profit at 1.0815.
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