EUR/USD Forecast: Key Technical Analysis for September 5, 2025
By: DailyForex, originally written by Christopher Lewis
(Source: https://www.dailyforex.com/forex-technical-analysis/2025/09/eurusd-forecast-5-september-2025/233651)
The EUR/USD currency pair has exhibited significant volatility recently, reflecting both underlying macroeconomic developments and technical trading factors. During the trading session from September 4 leading into September 5, 2025, the EUR/USD pair continued to show signs of market indecisiveness, with price action hovering near crucial technical levels.
This update will provide a comprehensive breakdown of the EUR/USD technical outlook, including resistance and support levels, recent candlestick formation analysis, momentum markers, and potential moves in the near term.
Recent Price Behavior
Throughout the past few sessions, EUR/USD has been characterized by choppy movements as traders remain cautious ahead of multiple potential fundamental triggers.
Highlights of recent price activity:
– The pair saw a modest recovery early in the week but failed to follow through with a strong upward push.
– Price action has largely consolidated between key support at the 1.0750 level and resistance near the 50-Day EMA.
– Recent sessions have formed candlesticks indicating indecision, including doji and small-bodied candles with long wicks on both sides.
These signals point toward an overall lack of directional conviction between buyers and sellers at the moment, with markets awaiting clearer economic signals to define the next move.
Technical Indicators
Several technical indicators suggest that EUR/USD remains stuck in a consolidation phase. However, traders should watch closely as the pair approaches these measurable turning points:
Moving Averages:
– 50-Day Exponential Moving Average (EMA): The EUR/USD pair currently trades near its 50-Day EMA, hovering just below this dynamic resistance line. The price has flirted with this level repeatedly, but momentum has not been sufficient to trigger a proper breakout.
– 200-Day EMA: The 200-Day EMA lies significantly lower than the 50-Day, confirming that overall, the longer-term trend has tilted bearish over recent months. Unless the pair can reclaim both the 50-Day and ultimately the 200-Day EMA, bullish conviction will remain limited.
Support and Resistance Levels:
Key resistance levels:
– 1.0880: This marks the recent swing high and has served as a ceiling multiple times in recent sessions.
– 1.0900: A psychologically significant round number as well as a previous support-turned-resistance zone.
– 1.1000: A major resistance area and psychologically crucial level that aligns with the top of a longer-term descending channel.
Important support levels:
– 1.0750: Immediate support level that has cushioned price drops repeatedly over the past two weeks.
– 1.0650: A more significant zone of demand, traced to prior price consolidation from earlier in the summer of 2025.
– 1.0500: A key psychological level and historical support area, broadly viewed as a bearish target if current consolidation breaks lower.
Momentum Indicators:
Other indicators are showing mixed signals on whether EUR/USD is poised for a larger move:
– Relative Strength Index (RSI): The daily RSI indicator remains neutral, currently floating near the 50-level threshold, suggesting no directional bias.
– MACD (Moving Average Convergence Divergence): The MACD histogram is flatlining, reflecting the price consolidation and lack of momentum.
Price Consolidation and Market Sentiment
The price has been compressed into a narrower range over the past several sessions, which is often a precursor to a breakout move. The absence of strong directional conviction suggests that many traders are waiting out market uncertainty.
Market psychology at play:
– Investors are balancing concerns around the European Central Bank’s stance on interest rates versus potential policy adjustments by the U.S. Federal Reserve.
– Traders are reluctant to fully commit to a direction until clearer guidance emerges from upcoming data releases
Read more on EUR/USD trading.