**EUR/USD Forecast Update – August 8, 2025**
*Original Analysis by Economies.com*
*Rewritten and Extended for Clarity and Detail*
The EUR/USD currency pair is exhibiting a new wave of bearish movement, reinforcing previous expectations for a continued downtrend in the short-term. As observed in the latest price action, the pair is pushing below key support levels, suggesting increased bearish momentum and weak underlying demand at current levels. The pair’s behavior aligns with the broader technical outlook, favoring a sustained depreciation in the euro against the U.S. dollar over the coming sessions.
This article provides an in-depth examination of the EUR/USD pair based on the original forecast update published by Economies.com on August 8, 2025. The forecast remains guided by both technical indicators and macroeconomic expectations, bearing insight into future trading strategies and market sentiment.
Key highlights of the current market condition and upcoming projections are as follows:
Overview of Current Market Behavior
– EUR/USD has resumed its bearish trajectory after a temporary attempt to recover during previous sessions.
– The pair has broken through several short-term support levels, confirming its movement within a descending trading channel.
– Prevailing negative sentiment around the euro is driven by weak economic performance in the eurozone, which contrasts with relatively stable U.S. macroeconomic data.
– Current price action is increasingly aligned with the longer-term bearish pattern first identified in June.
Technical Indicators Supporting a Bearish Outlook
Several technical tools and indicators reinforce the bearish forecast for the EUR/USD:
– Price Action:
– The EUR/USD has clearly breached the temporary support at 1.0960.
– The price is now forming lower highs and lower lows, consistent with a downtrend.
– Moving Averages:
– The 50-day and 100-day Exponential Moving Averages (EMAs) are sloping downward.
– The 50-day EMA has recently crossed below the 100-day EMA, signaling a bearish crossover.
– Relative Strength Index (RSI):
– RSI is trending below the 50 level, currently positioned around 42, indicating bearish momentum with room for further downside movement.
– MACD:
– The MACD histogram is in negative territory; MACD line remains below the signal line, supporting continued bear pressure.
Short-Term Forecast
The forecast for EUR/USD across the next trading sessions remains bearish under the current technical and fundamental landscape. The pair is expected to move toward the next significant level of support located near 1.0855. Should that level be breached decisively, the next potential support is around the 1.0780 area, which has acted as a reversal point during previous declines.
Traders should monitor the following technical levels:
– Resistance Levels:
– 1.0960: Previous support turned resistance.
– 1.1015: Near-term resistance aligned with the 50-day EMA.
– 1.1050: A key psychological barrier and recent swing high.
– Support Levels:
– 1.0855: Next minor support based on historical pivot lows.
– 1.0800: Downtown trendline intersects around this area.
– 1.0780: Medium-term support level with strong historical significance.
Fundamental Drivers Influencing EUR/USD Price Action
The movement of EUR/USD is shaped by a combination of economic indicators, monetary policy direction, and geopolitical developments. Below are the current macro elements affecting the currency pair:
– Eurozone Weakness:
– Recent economic data from the eurozone indicates a slowdown in industrial production and consumer spending.
– Core and headline inflation figures remain below the European Central Bank’s (ECB) 2 percent target, limiting policy flexibility.
– Dovish comments from ECB officials continue to weigh on the euro, suggesting that rate hikes are off the table for the foreseeable future.
– U.S. Dollar Strength:
– The U.S. economy demonstrates resilience, particularly in the labor
Read more on EUR/USD trading.