Pairs in Focus (28 December 2025 to 02 January 2026)
Original Author: Ibeth Rivero | Source: DailyForex.com
As 2025 comes to a close, several currency pairs are showing technical signals worth monitoring going into the New Year. Although this final trading week of the year is traditionally a lighter volume period due to holiday festivities, insightful price action suggests several pairs are at critical junctures. Market participants will be watching closely to see whether the ongoing trends continue or reversal patterns take form in early 2026.
Below is a detailed technical analysis of major and minor currency pairs for the week of 28 December 2025 to 2 January 2026.
EUR/USD Technical Outlook
The EUR/USD pair has maintained a steady upward momentum over the last few weeks. Its recent price movement suggests the bulls are regaining control, supported by ascending trendlines and key moving averages. Price recently breached above the 1.1100 level —a psychological barrier— and continues to aim for higher ground.
Key Observations:
– The pair is trading above the 50-day and 100-day exponential moving averages (EMAs), which provides bullish confirmation.
– RSI (Relative Strength Index) is currently near 61, indicating bullish momentum but not yet overbought.
– MACD indicator supports the bullish sentiment, showing a widening gap between the MACD line and the signal line.
Key Resistance Levels:
– 1.1145 – Recent swing high
– 1.1200 – Psychological resistance, also coinciding with resistance levels last reached in early September
Key Support Levels:
– 1.1065 – A former resistance level now turned support
– 1.1000 – A round number and a level where buyers may step in
Outlook: Bullish bias continues unless the pair falls below 1.1000, which would indicate a potential correction.
GBP/USD Technical Outlook
The British pound has appreciated steadily against the US dollar over the past month. The bullish trajectory has brought GBP/USD near the upper boundary of a consolidation zone that has been intact since late October 2025. Market sentiment suggests that a clean break above recent highs could lead to a renewed uptrend.
Key Observations:
– Price has steadily trended above the 200-day EMA, reinforcing longer-term bullish potential.
– The continuation pattern (ascending triangle) suggests upcoming breakout potential.
– RSI is approaching 65, suggesting strong bullish sentiment but nearing overbought territory.
Key Resistance Levels:
– 1.2840 – December high
– 1.2955 – August high, a significant barrier
Key Support Levels:
– 1.2730 – Support from early December
– 1.2650 – Strong horizontal support, reinforced by previous lows
Outlook: As long as the pair remains above 1.2650, bullish conditions are intact. A push above 1.2840 would confirm further upside potential into Q1 2026.
USD/JPY Technical Outlook
USD/JPY had shown strong bullish correction off the lows of mid-November but has recently met with considerable resistance. With the Japanese yen showing renewed strength, the pair may be poised for consolidation or a pullback in the short term.
Key Observations:
– Price has moved down below the 100-day EMA, which suggests near-term bearish pressure.
– RSI has dropped to around 48, indicating a shift to neutral momentum.
– MACD lines are converging, possibly signaling a change in trend direction.
Key Resistance Levels:
– 142.90 – Recent swing high from late December
– 145.20 – Strong resistance area, coinciding with the 200-day EMA
Key Support Levels:
– 141.10 – Immediate support based on recent consolidation activity
– 140.00 – A psychological support area
Outlook: Sideways to bearish bias in the near term. Watch for a break below 140.00 to
Explore this further here: USD/JPY trading.