EURUSD slides with focus shifting to the Jackson Hole Symposium

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The US Dollar has staged a decent comeback from the 98.00 handle after enduring a particularly brutal start to August. This is hurting EUR/USD in today's session.

You can access our most recent US Dollar analysis right here.

One of the key catalysts behind the drop in the pair was the Manufacturing PMI data beating market expectations (53.3 vs 49.5% exp).

Markets are now holding their breath, awaiting comments from Jerome Powell tomorrow morning 10:00 at the Jackson Hole Symposium. The Fed Chair's speech is expected to be a market-moving event, with participants still awaiting for clues about future policy direction.

EURUSD had enjoyed a spectacular relief rally following the August 1st NFP data, almost catching up to the pre-July 1.1830 highs.
However, this Euro strength now faces a test as Dollar sentiment begins to stabilize, this comes after the most recent advances in US led talks that seem to create progress in the Ukraine-Russia War.

ECB President Christine Lagarde is also expected to deliver remarks this weekend at the Jackson Hole Symposium, but the timeline is still not known.

The calendar for the conference will be be released tonight at 8:00 P.M. ET. on the Kansas City Fed Website right here: https://www.kansascityfed.org/

Read More: ISM manufacturing PMIs lift US stocks from another bearish open – intraday levels for Dow Jones, S&P 500 and Nasdaq

EURUSD Technical Analysis

EURUSD Daily Chart

EURUSD Daily Chart, August 21, 2025 – Source: TradingView

The Euro is still evolving in a downward sequence since August 13th 1.1730 spike highs.

The correction has been relatively moderated, with prices now entering the 1.16 to 1.1650 Pivot Zone, just below the 50-Day MA.

The RSI is starting to tilt downwards from neutral levels, indicating further potential downside from here – A break below the 1.16 psychological level would be require for bears to take the hand.

However, a failure to do so should point to further rangebound action ahead.

In the waiting for more information, let's have a closer look.

EURUSD 4H Chart

EURUSD 4H Chart, August 21, 2025 – Source: TradingView

The 4H timeframe allows us to spot the current low-slope downward channel that saw a strong break at the last trading week of July, before getting regained by the another sharp up-move on August 1st.

Volatility has since retracted strongly, with the ongoing move-down reaching the mid-point of the channel.

A break below 1.16 (current trading) as mentioned on the Daily timeframe analysis would be supplemented by potential selling acceleration at the lower bound of the channel.

Buyers would need to step in around the current level to maintain the more balanced price action and avoid further bearish tilt.

EUR/USD Levels to keep on your charts:

Resistance Levels

• 1.1730 August 13th highs
• 2020 Resistance around the 1.18 Zone
• 1.1830 2025 top

Support Levels

• Current Pivot Zone 1.16 to 1.1650
• 1.1450 to 1.15 Psychological Level
• 1.1350 to 1.14 Support 2

EURUSD 1H Chart

EURUSD 1H Chart, August 21, 2025 – Source: TradingView

Looking further to the 1H timeframe, we see further action within the 1.16 to 1.1650 pivot zone (with higher and lower bounds of the zone highlighted).

Sellers are reaching the lower bound of a smaller timeframe descending channel.

Buyers stepping here would be more necessary to avoid a further break as mentioned before – A failure to do so would accentuate the potential bearish acceleration in the most traded currency pair.


Safe Trades

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