Yoooo, EUR/USD is having trouble making new highs above a key resistance zone!
Will this lead to the pair making new Q3 2025 lows?
Here’s what we’re seeing on the daily time frame:
EUR/USD Daily Forex Chart by TradingView
Easing U.S.-EU trade tensions and hopes for a Russia-Ukraine peace deal have kept demand for the euro supported, driving EUR/USD higher since the start of the month.
Meanwhile, the dollar has struggled to extend gains as Treasury yields retreat, questions over Fed independence linger, and markets scale back expectations for aggressive rate cuts.
Attention now turns to Powell’s remarks on Friday. Any signal of future easing could reset pre-Jackson Hole positioning and send the dollar sharply higher.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the U.S. dollar and the euro, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/USD has been trending lower since late June, when it ran into resistance at the 1.1800 psychological level.
The pair is now hovering near 1.1650, which lines up with the R1 Pivot Point at 1.1695 and the top of the descending channel that has been in play since the current downtrend started.
Fresh and decisive bearish candlesticks could set up a move toward the 1.1550 mid-channel area and potentially down to the 1.1400 channel support.
On the other hand, a break above 1.1750 with sustained momentum would open the door for a retest of 1.1800 and possibly fresh 2025 highs near 1.2000.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
