**Technical Analysis of Major Forex Pairs – August 22, 2025**
*Adapted and expanded from the original article by Kukil Bora, published on FX Daily Report.*
The forex market continues to present a volatile landscape in late August 2025, with global macroeconomic trends and central bank moves dictating price action across major currency pairs. As traders digest fresh economic data and adjust expectations for future monetary policy, the technical setups for key forex pairs reveal the market’s immediate priorities and potential trading opportunities.
**Current Market Environment**
Recent sessions have seen significant movement driven by:
– Speculation around upcoming interest rate decisions from the Federal Reserve, European Central Bank, and Bank of Japan
– A cautious outlook over global growth prospects amid fluctuating commodity prices
– Ongoing geopolitical risks in several regions
– Shifting appetite for risk as equity indices and commodities adjust to macro changes
These drivers have contributed to heightened volatility across major pairs, making it essential for traders to incorporate both technical and fundamental perspectives into their strategies.
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## EUR/USD Technical Analysis
**Overview**
The EUR/USD, the most traded forex pair, is consolidating near multi-week lows after bearish momentum took hold earlier in the month. The common currency has struggled against the dollar amid diverging economic signals from the US and eurozone.
**Key Technical Levels**
– **Support:** 1.0720; 1.0650
– **Resistance:** 1.0800; 1.0865
**Price Action**
– After failing to sustain gains above 1.0800, EUR/USD retreated toward 1.0720.
– The pair is trading below its 50-day and 200-day moving averages, indicating persistent bearish sentiment.
– Momentum indicators, including the Relative Strength Index (RSI), remain in neutral to slightly bearish territory.
**Chart Pattern and Outlook**
– EUR/USD has built a support zone near 1.0720, with a break below this level likely sending the pair to 1.0650.
– On the upside, any close above 1.0800 may spur corrective gains toward 1.0865, which coincides with the next notable resistance level.
– Short-term bias: Neutral to bearish unless the pair can reclaim 1.0800 with conviction.
**Fundamental Factors to Watch**
– Eurozone PMI releases and ECB policy comments
– US Federal Reserve meeting minutes and key inflation readings
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## GBP/USD Technical Analysis
**Overview**
Sterling has seen increased volatility against the dollar, as conflicting economic data fuels speculation about the Bank of England’s next move. The pound remains pressured below recent highs, with traders watching for signs of bottoming.
**Key Technical Levels**
– **Support:** 1.2600; 1.2550
– **Resistance:** 1.2740; 1.2800
**Price Action**
– GBP/USD reversed from resistance at 1.2740, dropping back
Read more on AUD/USD trading.