EUR/USD Forex Signal Analysis – 21 August 2025
By: DailyForex.com Technical Analysis Team
The EUR/USD currency pair demonstrated a relatively range-bound movement on 21 August 2025. The pair traded just below the 1.0900 level, maintaining stability amidst a quiet economic calendar and minimal incentive for traders to push the price in either direction aggressively.
Market Context and Overview
– During the last few sessions leading up to 21 August, EUR/USD had oscillated within a narrow range, between the 1.0870 and 1.0920 levels.
– Traders are preparing for potential market shifts as several key global economic announcements are due later this week.
– Recent commentary from central banks, particularly the European Central Bank (ECB) and the U.S. Federal Reserve, suggests both are relying on forthcoming data before making assertive policy changes.
– Lacking significant data releases on Monday, the price movement was mostly influenced by technical indicators rather than fundamental ones.
Despite the absence of high-impact economic events during the trading session, several technical factors signaled possible upcoming volatility, especially with increased focus on core inflation numbers expected out of the Eurozone and U.S. in the days ahead.
Key Support and Resistance Levels
Technical analysis for the EUR/USD pair for this trading session reveals several important support and resistance markers.
– Immediate Resistance: 1.0915
This is a crucial short-term resistance level, as prior attempts to breach this point have failed. A close above this benchmark might lead to a new bullish run toward higher levels.
– Extended Resistance: 1.0950
Once above 1.0915, 1.0950 is the next logical target based on previous price actions from late July and early August. Buyers could intensify momentum if this level is breached.
– Strong Support: 1.0870
This level has proven effective in maintaining bearish pressures. A daily close below this point increases chances for a slide toward 1.0825 or even lower.
– Additional Support Zones:
• 1.0850 – Considered psychological support
• 1.0825 – Technical retracement support from recent upward leg
• 1.0780 – Multi-week structural bottom
These levels provide traders with key zones to observe, both for entry and exit signals, especially ahead of the anticipated inflation data scheduled for the following days.
Trend Analysis and Price Action
– General Trend: Neutral to Slightly Bullish
The prevailing trend for EUR/USD over the past two weeks has been mostly sideways with a slight bullish bias. This was evident from the market’s ability to maintain a foothold above the mid-range of its recent channel.
– Price Structure: Consistent Higher Lows
A notable technical feature has been the formation of higher lows, suggesting sustained, though moderate, buying interest.
– Breakout Watch:
• Bullish scenario: Break and sustained move above 1.0925
• Bearish scenario: Close below 1.0860 with increased selling volume
Indicators and Oscillators
A closer look at trading indicators suggests the market may be preparing for a directional breakout, although timing remains uncertain due to the constrained price movements.
– Relative Strength Index (RSI):
• Current Reading: Around 52
• Interpretation: Neutral and indecisive, with neither overbought nor oversold conditions
– Moving Averages:
• 50-period MA: Acted as dynamic support on lower time frames
• 200-period MA: Near convergence with 1.0860, offering a potential springboard for support
– MACD (Moving Average Convergence Divergence):
• Currently flat, showing decreasing momentum in both buying and selling vectors
Technical Takeaways
– Bullish Signals:
• Price consistently avoids closing below structural supports
• Narrow range consolidation near resistance could indicate accumulation
–
Read more on EUR/USD trading.