FPG EURUSD Market Report August 26, 2025

EURUSD is currently traded around 1.1641, following several weeks of consolidation within a well-defined range. Price action has been capped by strong resistance near 1.1805 while buyers continue to defend the key support zone at 1.1581. The pair has been struggling to extend its mid-2025 bullish momentum, showing hesitation around these major levels. This structure reflects a market in balance, where both bulls and bears are cautious ahead of a potential breakout. A decisive move outside this consolidation area could shape the medium-term trend direction for the weeks ahead.

On the weekly chart, recent candlestick structures show mild bearish pressure after rejection near resistance. The Bollinger Bands are flattening, and price is oscillating around the middle band, reflecting a sideways environment. If buyers manage to sustain bids above 1.1581, the pair retains potential to re-challenge the 1.1805 resistance. However, a breakdown below this zone would open the path toward the next demand area around 1.1393.

Momentum indicators show mixed signals. The MACD (12,26,9) histogram is contracting, suggesting fading bullish momentum after the previous rally. At the same time, Bears Power continues to reflect selling pressure, though not aggressively. This combination highlights a lack of strong conviction from either side, making the next weekly close highly critical for trend confirmation.

The medium-term outlook hinges on the defense of 1.1581. As long as this support remains intact, buyers could attempt another push toward 1.1805 and potentially higher levels. Conversely, a decisive break below 1.1581 would tilt sentiment bearish, paving the way toward 1.1393. Market participants should be prepared for heightened volatility as EURUSD approaches these pivotal zones.

Market Observation & Strategy Advice
1. Current position: EURUSD traded around 1.1641, showing indecision within a consolidation band.
2. Resistance: 1.1805, a crucial barrier for bullish continuation.
3. Support: 1.1581 as the key floor, followed by 1.1393 if breached.
4. Indicators: Bollinger Band: Price stabilizing near the middle band, signaling range-bound conditions. MACD & Bears Power: MACD histogram contracts while Bears Power stays negative, confirming fading bullish drive and persistent selling pressure.
5. Trading Strategy Suggestions

• Long Setup: Buy on confirmed breakout above 1.1805 with upside targets at 1.1920 and 1.2050.
• Pullback Buy: Consider entries near 1.1581 if retested and defended strongly, with stops just below 1.1550.
• Risk Management: Keep stops tight (40–60 pips) due to potential volatility spikes around consolidation boundaries.
  
  

Market Performance:
Forex           Last Price      % Change
GBP/USD       1.34745            +0.16%
USD/JPY        147.324            −0.30%

Today’s Key Economic Calendar:
AU: RBA Meeting Minutes
US: Durable Goods Orders MoM