EURUSD Analysis: Bulls Face Headwinds as Price Tests Critical Support

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the EURUSD for July 25, 2025.

Technical Analysis of EURUSD

EURUSD Daily Chart Insights

• Stochastic Oscillator: The oscillator’s lines are converging and beginning to decline, indicating that bullish momentum may be weakening in the near term. This development could result in a consolidation phase or modest retracement before the upward trend potentially continues.
• Key support area: The recent trend peak sits near the 1.1785 level, representing the most significant immediate resistance for price action to surpass. A break and close beneath the primary support zone at 1.1615 would signal the initial indication of notable weakness. Such a breach would suggest a potential shift from bullish to neutral/corrective sentiment in the short term and could prompt price to test the black moving average.

EURUSD 2-hour Chart Analysis

• Bullish Reversal: The price has retreated from its recent peak and is currently testing the short-term (purple) moving average. The Stochastic Oscillator has declined from overbought levels into neutral territory, suggesting recent bullish momentum has stalled. Such conditions indicate a period of either consolidation or deeper retracement before potential uptrend continuation. The overall outlook remains bullish as long as key support levels hold.
• Breakout scenarios: A sustained break and close above the immediate resistance at 1.1790 would constitute a bullish breakout, confirming the end of the current pullback and signaling a resumption of the bullish trend, with the next likely target being the secondary resistance at 1.1810. Conversely, a bearish breakdown would occur if the first key support zone at 1.1680 – 1.1700 fails to hold, marked by a close below the black moving average, which would represent a significant sign of weakness and shift the immediate outlook from bullish to neutral/bearish, potentially leading to a test of the major support zone around the green moving average (~1.1640).

EURUSD Pivot Indicator

• While the chart displays a broader uptrend over recent days, the immediate outlook has shifted to neutral with a bearish bias as price has recently broken below both the short-term (purple) and medium-term (black) moving averages, which now function as resistance levels. The price action has become choppy and failed to establish a new high, instead forming a lower high around 1.1775, and combined with the break of the moving averages, indicates a significant loss of upward momentum.
• Bearish Breakdown: A sustained break and close below the key support zone of 1.1725 – 1.1715 would constitute a strong bearish signal, likely opening the door for a downward move to test the 1.1700 support level.
• Bullish Reversal/Breakout: For bulls to regain control, price would need to reclaim the immediate resistance zone at 1.1750 – 1.1755, with a decisive close above that area serving as the first sign of strength and a further breakout above 1.1775 required to confirm a potential resumption of the uptrend towards the major resistance at 1.1785.

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