EUR/USD Technical Outlook: Resistance in Sight

Introduction to EUR/USD

The EUR-USD currency pair, often referred to as “Fiber,” represents the exchange rate between the Euro and the US Dollar. It is the most heavily traded currency pair in the world, serving as a benchmark for global forex activity. Given the economic importance of both the Eurozone and the United States, the pair is highly sensitive to financial data, interest rate changes, and geopolitical developments. Traders closely monitor EUR/USD for insights into broader global macroeconomic conditions.

EURUSD Market Overview

The EUR USD pair continues to maintain its bullish momentum as of July 25, 2025, supported by improved economic sentiment across the Eurozone. Recent releases from the ifo Institute and the National Bank of Belgium show positive business confidence, suggesting renewed optimism among European businesses. The European Central Bank’s updates on money supply and loan issuance also signal economic expansion, with both indicators exceeding forecasts, indicating healthy credit flow and inflationary potential. Meanwhile, in the US, durable goods orders, both core and headline, posted robust numbers, hinting at continued manufacturing strength. Despite this, the USD has slightly weakened against the Euro, as Eurozone economic data showed a broader impact across multiple sectors, which may tilt market sentiment further in favor of the Euro in the short term.

EUR-USD Technical Analysis

On the daily chart, EURUSD shows strong bullish price action, bouncing off the ascending trendline that has been respected since mid-March. After forming a pullback near the previous resistance-turned-support level around 1.16000, price action has resumed its upward climb and is currently testing the key resistance zone near 1.17787. Bollinger Bands suggest bullish pressure, as price remains above the midline and heads toward the upper band. The Awesome Oscillator confirms this momentum with fresh green bars above the zero line, showing that buying pressure is increasing. The Fisher Transform is also turning upwards after a recent dip, suggesting a potential continuation of the uptrend if resistance is broken in the next few trading sessions.

Final Words About EUR vs USD

EUR USD remains in a strong uptrend, both technically and fundamentally, supported by improving Eurozone economic sentiment and sustained bullish market structure. While the US continues to show resilient data, it has not been enough to offset the Euro’s broad-based strength. A decisive breakout above the 1.17787 resistance could lead to a new bullish leg, potentially targeting psychological levels such as 1.18500 or 1.19000 in the coming weeks. Traders should closely monitor price behavior at this critical resistance level, as even a temporary rejection could lead to a healthy correction before another bullish attempt. For now, the bias remains bullish unless the price falls below the ascending trendline and key support around 1.16000.