Created on October 21, 2025

EUR/USD Analysis Summary Today

• Overall Trend: Weak upward correction.
• Support Levels for EUR/USD Today: 1.1600 – 1.1550 – 1.1480.
• Resistance Levels for EUR/USD Today: 1.1700 – 1.1780 – 1.1850.

EUR/USD Trading Signals:

• Buy the EUR/USD from the support level of 1.1560, target 1.1800, and stop 1.1480.
• Sell the EUR/USD from the resistance level of 1.1730, target 1.1600, and stop 1.1800.

Technical Analysis of EUR/USD Today:

According to recent trading, the EUR/USD pair has broken through a key resistance area at the key psychological support level of 1.1600, indicating that the uptrend may be gaining momentum. However, the price appears to be retreating to this broken resistance level, which has now become support, potentially attracting more buyers willing to join the rally. According to reliable trading platforms, the current price zone corresponds to the 50% and 61.8% Fibonacci retracement levels at 1.1637 and 1.16157, respectively, extending from the previous swing low at 1.1545 to the swing high at 1.1728. These technical areas may be sufficient to control losses and trigger a rebound to or above the previous highs.

Consequently, if the broken resistance zone and the Fibonacci levels hold as a base, the EUR/USD pair may resume its ascent and could target the psychological upward level of 1.18000 later. On the other hand, a break below these support areas could indicate a weakening of the upward momentum, leading to a deeper correction toward the swing low.

Therefore, if the broken resistance area and Fibonacci levels hold as a bottom, the EUR/USD pair may resume its upward trend, potentially targeting the psychologically significant 1.18000 level later. Conversely, a break below these support areas could indicate weakening upward momentum, leading to a deeper correction towards the swing low. Meanwhile, the 100-period simple moving average (SMA) is below the 200-period simple moving average (SMA) on the short-term timeframe, suggesting that the strongest trend was previously downward. However, the price has broken both SMAs, indicating a potential shift in momentum. The 200-period simple moving average appears to be stabilizing, suggesting that upward pressure may be increasing.

The stochastic indicator is also rising from the oversold zone, reflecting a return of buying interest. The oscillator has plenty of room to rise before reaching the overbought zone, so buyers may take control for a longer period, bringing the EUR/USD pair back to the swing high or achieving new highs above 1.17288. The Relative Strength Index (RSI) is also trending upward from the mid-range, confirming the increasing upward momentum. As long as the oscillator maintains its upward trend, the price may continue to follow the same trend.

Trading Tips:

The bullish shift in EUR/USD is at its beginning. Therefore, the currency pair may be influenced by upcoming economic data and central bank commentary as traders assess monetary policy expectations for both regions, while the US government shutdown may further weigh on the US Dollar.

EUR/USD Trading Awaits US Inflation Figures

According to Forex trading, the euro appears to be better supported at this stage; it just needs something to spark a continued recovery. This spark could come from the release of US inflation data, scheduled for the end of the week. The US dollar is likely to decline if US inflation meets or falls below expectations, which would push the EUR/USD exchange rate to extend its recent recovery to 1.1750.

In general, Markets expect US CPI inflation to reach 3.1% in September, up from 2.9% in August, while core inflation is expected to reach 3.1%. Any reading above expectations will naturally strengthen the dollar, as investors will have no choice but to lower their expectations for future interest rate cuts, a development typically considered supportive of the US dollar. Before the US inflation data is released, the euro will be subject to the Eurozone Purchasing Managers’ Index (PMI) survey, which will provide insight into the region’s economic performance in October. A strong set of PMIs will support the euro against the dollar, as they will support the European Central Bank’s stance on maintaining interest rates at their current level.

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Created on October 21, 2025

• The British pound faces consolidation against the Japanese yen near ¥202 after volatile sessions.
• Support lies around ¥200 and resistance at ¥204–¥205, with the broader trend remaining bullish and positive carry favoring long positions.

The British pound initially rallied during the trading session on Monday against the Japanese yen. As we continue to see a lot of noisy trading over the last four sessions, we have seen a hammer, an inverted hammer, a hammer, and then another inverted hammer. With that being said, it looks very much like a market that is stuck at the ¥202 level. Even if we break down from here, I think there’s a lot of support near the ¥200 level, which also has the 50-day EMA coming into the picture.

The Importance of the 50-day EMA

The 50-day EMA is a famous trend-following type of indicator that I think will attract a lot of attention. And the fact that it’s right there at that ¥200 level, of course, has even more people paying attention to it. If we can break above the ¥204 level, then it opens up the possibility of the ¥205 level rather quickly.

Overall, we are in a positive trend, with the British pound offering a positive swap against the Japanese yen. And when you look around the forex world at the moment, all of the yen-related pairs look the same. They all gapped higher, pulled back a bit, and now they look as if they are trying to at least grind to the upside.

That being said, this is a very noisy couple of sessions, so I don’t think we’re in the all clear to get overly bullish yet. But you get the payment at the end of every day via swap to at least make this pair work out over the longer term, assuming that the trend continues. I see nothing on this chart that changes that trend anytime soon.

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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.