*Original Analysis by: DailyForex*
**Weekly Forex Pair Analysis: December 7–12, 2025**
The week of December 7 to 12, 2025, presents key developments in the foreign exchange market, with several currency pairs at crucial technical levels. With central bank policy in focus and macroeconomic trends driving volatility, this article provides an in-depth look into the major and minor currency pairs. Technical setups, momentum indicators, and support/resistance zones reveal actionable insights for traders.
Below, we cover the major Forex pairs in focus this week, including EUR/USD, GBP/USD, USD/JPY, AUD/USD, and USD/CAD, with a comprehensive technical breakdown for each.
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## EUR/USD Technical Overview
The euro has been relatively resilient despite a series of mixed European economic data releases. Investor attention remains on inflation readings across the Eurozone and the European Central Bank’s stance amid slowing growth. EUR/USD is trading close to major resistance as it approaches a pivotal decision zone.
**Technical Setup:**
– Currently consolidating around the 1.0850 – 1.0900 region after rebounding from support at 1.0720.
– The 200-day moving average is providing intermediate support at 1.0780.
– Downtrend resistance from the July high intersects around 1.0950, suggesting a strong supply area.
– Fibonacci retracement levels from the July to October move highlight 1.0905 as a key level (61.8% retracement).
**Momentum & Indicators:**
– RSI around 55 suggests neither overbought nor oversold conditions; room exists for a breakout.
– Slight bullish divergence from recent lows. MACD histogram slowly climbing above zero, showing potential for upside follow-through.
**Outlook:**
– A confirmed breakout above 1.0900 could see the pair target 1.1050 and then 1.1180.
– Bearish pressure would return if the pair breaks below 1.0780, opening a path toward 1.0700.
– ECB communication will be key; dovish rhetoric or declining inflation data could push the euro lower.
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## GBP/USD Technical Overview
Sterling faces pressure due to economic stagnation and diminished interest rate hike expectations from the Bank of England. GBP/USD is attempting to hold above 1.2600 while navigating a complex resistance structure.
**Key Price Levels:**
– Seen trading just above 1.2600 after a recent rejection near 1.2730.
– 1.2585 — a key near-term support level — aligns with a rising trend line from the October lows.
– Medium resistance lies at 1.2750; breakout from this zone could initiate a trend continuation toward 1.2900.
**Indicators & Patterns:**
– RSI around 50, with no clear divergence, reflects broad consolidation.
– MACD flattening, signaling reduced momentum in either direction.
– Price consolidating in what could become a symmetrical triangle, indicating a likely breakout within the next few days.
**Market Drivers:**
– Employment data and GDP reports from the UK could trigger volatility.
– Any signs that the BoE might delay further tightening could pressure GBP lower.
– US data and Federal Reserve commentary still vastly influence this cross due to USD’s safe-haven strength.
**Forecast:**
– A weekly close above 1.2750 would favor a bullish continuation.
– Conversely, a break below 1.2570 might trigger a deeper retracement toward 1.2440 and 1.2370.
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## USD/JPY Technical Analysis
USD/JPY remains sensitive to bond yields and monetary policy divergence between the US Federal Reserve and the Bank of Japan. While the Fed is nearing the end of its tightening cycle, the BoJ continues to maintain ultra-loose policy, albeit with subtle shifts signaling a more hawkish undertone.
**Technical Observations:**
– USD/JPY broke below
Read more on USD/CAD trading.