Daily Market Report
08/25/2026
EUR/USD ranged in the mid 1.16s overnight. The Euro (EUR) remains practically flat against the US Dollar (USD) on Tuesday, trading above 1.1650, at a relatively short distance from the three-month highs, at 1.1710 hit last week. The EUR/USD pair keeps drawing support from a soft US Dollar, which remains depressed, amid concerns about the Federal Reserve’s (Fed) independence in the aftermath of the US Treasury’s bond buyback plans.
The EUR/USD is poised to consolidate further, as price action has failed to extend the market structure of higher highs and higher lows. Momentum shifted bullish, as the Relative Strength Index (RSI) shifted overbought, an indication that bulls are in charge.
However, the path of least resistance for EUR/USD is for it to continue trading sideways.
For a bullish resumption, the first resistance for EUR/USD is 1.1700. A breach of the latter will expose the 1.1750 psychological level, followed by the May 6 high at 1.1795, ahead of 1.1800. On further strength, the next stop is the April 17 swing high of 1.1849.
The British Pound (GBP) remains practically flat for the second consecutive day against the US Dollar (USD), with markets on a “wait-and-see” stance, awaiting key US Inflation data on Wednesday and the Jackson Hole central bankers’ summit on Friday. The GBP/USD pair flatlines around 1.3630 with the six-month highs of 1.3675 reached last week still in the bulls’ target.
FX volatility is unusually low, in the absence of key macroeconomic releases, ahead of August’s US Personal Consumption Expenditures (PCE) Price Index figures, the US Federal Reserve’s (Fed) favorite inflation gauge. The market consensus points to sticky inflationary pressures, which would give further reasons for Fed hawks to call for monetary tightening.
USD/JPY trades at 159.32, highlighting a series of higher lows and higher highs since bottoming near 155.20 in early August, with bulls aiming for the 160.00 level. Momentum indicators in the 4-hour chart are moderately positive, with the Relative Strength Index (14) around 58, and the Moving Average Convergence Divergence (MACD) histogram showing widening green bars, altogether suggesting that bulls are in control.
Initial resistance is seen in the area between the August 18 high, at 159.75, and the 160.00 level, considered a potential trigger for a Tokyo intervention. Further up, the July 31 high, near 160.90, would come into focus.
On the downside, an unlikely bearish reversal would be tested at the June 19 low of 158.10, ahead of the August 7 low, near 156.70, and the mentioned post-intervention low, at 155.23.
Source: FX Street