This is a rewritten version of the article “EUR/USD Analysis: 6 August 2025,” originally published on DailyForex.com by Mahmoud Abdallah. The version below expands on his analysis while maintaining proper attribution and tailoring the information for clarity and depth.
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Title: In-Depth Technical Analysis of EUR/USD – August 6, 2025
Original Author: Mahmoud Abdallah, DailyForex.com
The EUR/USD pair maintained a cautious tone during the early trading hours of August 6, 2025, reacting to fresh economic developments and technical indicators that are shaping short and medium-term sentiment. The currency pair continues to face downward pressure, driven by diverging monetary policies between the European Central Bank (ECB) and the Federal Reserve, as well as subdued macroeconomic data from the Eurozone.
As of this writing, EUR/USD continues to struggle to gain upward momentum and is hovering near monthly lows. The bearish tone that has dominated recent sessions reflects both market sentiment and broader economic variables underpinning investor behavior across the forex landscape.
Overview of Current EUR/USD Market Behavior
– The pair opened this week’s trading session with continued weakness.
– Sellers remain in control as the euro struggles to gain traction against the dollar.
– The exchange rate is hovering near 1.0860 as of the latest market update.
– Short-term resistance remains firm near the 1.0900 level.
Key Contributors to the EUR/USD Bearish Trend
Several macroeconomic and technical factors are contributing to the sustained bearish pressure on the EUR/USD pair. These include economic performance disparities between the Eurozone and the United States, shifting interest rate expectations, and cautious investor sentiment.
1. Divergence in Monetary Policy
– The U.S. Federal Reserve’s recent rhetoric has reaffirmed its commitment to maintaining higher interest rates for an extended period.
– On the other hand, the ECB remains in a more dovish stance, citing stagnating growth and inflation uncertainties within the Eurozone.
– This monetary policy divergence continues to be one of the central themes behind EUR/USD depreciation.
2. Weak Eurozone Economic Data
– Recent economic indicators from the Euro area have failed to impress investors.
– Purchasing Managers’ Index (PMI) readings have shown weakening activity in both the manufacturing and services sectors across major European economies.
– The German economy in particular reflects signs of stagnation, further undermining the euro’s strength.
– Recent consumer confidence figures have also come in below expectations.
3. Dollar Strength and Safe-Haven Flows
– With the global economic outlook filled with uncertainties, the U.S. dollar continues to attract safe-haven flows.
– This is exacerbated by concerns over global trade tensions, geopolitical hotspots, and fluctuating commodity prices.
– The U.S. dollar index has posted consistent gains, reaching levels not seen since early 2025.
Technical Analysis: EUR/USD Pricing Outlook
Technical indicators across various timeframes currently suggest that EUR/USD may continue to experience downside pressure, unless a significant catalyst shifts momentum in favor of the euro.
Support Levels to Watch
– 1.0845: Initial short-term support. Violation could quickly lead to a test of lower zones.
– 1.0800: Psychological support zone and a potential floor in the medium-term outlook.
– 1.0730: Deeper support seen from historical price action in early Q2 2025.
Resistance Levels to Monitor
– 1.0900: First layer of resistance; marked by a convergence of moving averages on the hourly chart.
– 1.0955: Represents a near-term barrier to any rally attempts; aligned with a recent descending trendline.
– 1.1020: Reversal threshold; closing above this region may change the short-term market structure.
Indicators and Oscillator Readings
– Relative Strength Index (RSI): Currently hovering near the 40 level on the daily chart, indicating ongoing bearish momentum but not yet in oversold territory.
– Moving Averages:
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