Based on the original article by Mahmoud Abdallah on DailyForex.com, here is a rewritten, expanded version with added detail and bullet points for clarity. The content focuses on the forex pairs in the spotlight from August 3rd to 8th, 2025, presenting technical analysis alongside fundamental drivers affecting currency movements in the current market landscape.
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Title: Weekly Forex Outlook: Key Currency Pairs to Watch from August 3rd to 8th, 2025
Original Author: Mahmoud Abdallah | Source: DailyForex.com
Overview
The first full trading week of August 2025 presents several critical opportunities across major and minor forex pairs. Market participants are closely analyzing central bank policy expectations, inflation dynamics, and fresh economic data releases to gauge the strength and direction of currency movements. Key pairs such as EUR/USD, GBP/USD, USD/JPY, and USD/CAD are showing technical formations influenced by risk appetite, rate differentials, and geopolitical undertones.
This weekly outlook breaks down the critical support and resistance levels, trend biases, and possible scenarios for key forex pairs. Traders should analyze these technical outlooks in conjunction with any incoming fundamental events to define their trading strategy.
EUR/USD – Technical and Fundamental Outlook
The EUR/USD remains under pressure following the dollar’s strength in recent weeks. A bounce in US Treasury yields and expectations that the Federal Reserve may refrain from rate cuts in the short term have kept the US dollar broadly supported.
Key Technical Observations:
– EUR/USD is currently trending below both the 50-day and 100-day exponential moving averages (EMAs), indicating bearish sentiment.
– The pair found near-term support around the 1.0800 level, a psychological and technical zone that previously acted as a pivot.
– Resistance is seen at 1.0940 and 1.0990. A break above these could reintroduce bullish momentum in the short term.
Technical Summary:
– Daily RSI remains below the 50 neutral line, favoring continued downside.
– MACD indicator is in negative territory but shows signs of potential convergence.
– Next support zones lie at 1.0740 and then 1.0700, where longer-term buyers may enter.
Fundamental Factors to Watch:
– Comments from European Central Bank (ECB) officials regarding inflation moderation and future policy rate guidance.
– US economic releases, particularly ISM services data and the weekly jobs report, could add volatility.
– If US data continues to outperform Eurozone figures, the USD would likely remain favored, pressuring the EUR/USD.
Trading Strategy:
– A cautious bearish bias below 1.0940, with downside targets at 1.0780 and 1.0700.
– An upside break above 1.0990 would negate the current bearish structure.
GBP/USD – Brexit Risks Diminished but Sterling Faces Monetary Pressure
The British pound remains sensitive to macroeconomic developments in both the UK and the US. While Brexit-related fears have faded, the GBP faces downside risk from stagnant growth in the UK economy and volatility stemming from Bank of England policy outlook.
Key Technical Observations:
– GBP/USD maintains a short-term bearish trajectory, currently suppressed below the 1.2850 zone.
– Immediate support is at 1.2680, a level that has been tested multiple times over the past weeks.
– Resistance zones lie at 1.2810 and a more significant ceiling at 1.2950.
Technical Summary:
– Daily chart shows the price remains under the bearish trend line that began in mid-July.
– RSI hovers near neutral but shows no clear bullish divergence.
– Weekly chart structure indicates room for a decline toward the 1.2600 area if 1.2680 is breached.
Fundamental Factors to Watch:
– Bank of England rate decision and monetary policy statement, which may clarify the central bank’s rate path.
– Economic data out of the UK, especially services PMI and GDP updates.
– US dollar
Explore this further here: USD/JPY trading.