Forex Technical Major Pairs Analysis – December 26, 2025
Original article by Rico Lopez, published on FXDailyReport.com
The foreign exchange market remains highly dynamic as the year winds down. As traders prepare for the last few trading sessions of 2025, a focus on the technical outlook of major currency pairs offers key insights into potential movements and strategies. Below is a comprehensive technical analysis of the following major currency pairs:
• EUR/USD
• GBP/USD
• USD/JPY
• AUD/USD
• USD/CHF
• USD/CAD
This extended analysis will explore key support and resistance levels, moving averages, price patterns, and other indicators to inform positions in the FX market. Credit to Rico Lopez of FXDailyReport.com for the original analysis.
EUR/USD
The EUR/USD pair continues to display bullish momentum, finding strong support on dips and pushing higher despite market hesitation around the holiday season.
– The pair is currently trading within a strong ascending channel that has remained intact since October 2025.
– The horizontal resistance area at 1.1000 was cleared recently, opening the door for further gains toward 1.1200.
– The 50-day and 200-day Exponential Moving Averages (EMAs) are trending higher and currently offer support at 1.0960 and 1.0800 respectively.
– The Relative Strength Index (RSI) is near the 70 mark, suggesting slightly overbought conditions. However, the RSI has remained elevated without reversing, reinforcing the overall bullish tone.
– A pullback toward the 1.1000 level could be an opportunity for bullish re-entry if support holds.
– If bulls maintain pressure, the next major target is 1.1200, with a break above extending gains toward 1.1400.
– On the downside, a drop below 1.0960 may bring the 1.0850 support zone back into focus.
Traders should continue initiating long positions on dips as long as the price remains above the 50-day EMA. Caution is advised if price pierces this moving average support.
GBP/USD
The British pound has exhibited resilience amid political uncertainty, consolidating above important support zones and attempting to sustain upward momentum.
– The pair has managed to hold above the 1.2700 support level, showcasing market optimism.
– A bullish breakout above previous resistance at 1.2800 could signal an extended rally toward 1.3000.
– The 50-day EMA is sloping up and now provides dynamic support around 1.2750, while the 200-day EMA sits further down at 1.2550.
– RSI currently reads near 60, leaving room for continued upside without signaling overbought territory.
– If the pair fails to hold the 1.2700 area, a corrective move toward 1.2600 or even 1.2500 is possible.
– Price action shows higher lows and higher highs, indicating a broadly bullish structure.
A break above the 1.2850 resistance zone will likely encourage a test of the 1.3000 psychological level. Traders may consider long positions on minor corrections while implementing stops near the 1.2650 support area.
USD/JPY
USD/JPY has seen significant selling pressure in recent sessions, as dovish signals from the Federal Reserve dampened demand for the US dollar.
– The pair has fallen sharply from the 150.00 level and is currently struggling to stay above 141.50.
– A clear downtrend has formed, with price trading below both the 50-day and 200-day EMAs. This technical breakdown signals weakness and encourages bearish sentiment.
– RSI is hovering near the 40 level but is yet to reach oversold territory, implying room for further downside.
– The next support zone sits at 140.00, with a
Explore this further here: USD/JPY trading.