Title: Weekly Forex Market Outlook: August 24–29, 2025
Based on the article by DailyForex Technical Analysis Team
Overview
The Forex market in the final week of August 2025 is poised for several significant movements driven by economic indicators, central bank commentary, and technical price setups. As market participants approach the end of the summer season, volumes may remain lighter than usual, but several key forex pairs are setting up for potential volatility.
This forecast will break down expectations for major currency pairs, including the EUR/USD, GBP/USD, USD/JPY, AUD/USD, and others. Additionally, we’ll highlight major economic indicators and central bank events that could influence Forex trading decisions during the week of August 24–29, 2025.
Fundamental Themes to Watch
– Light summer liquidity remains a factor, potentially leading to sharper price moves in lower volume environments.
– The Jackson Hole Economic Symposium concludes on August 24, and traders will still be digesting comments from central bankers.
– Key economic data releases, including U.S. durable goods orders and Eurozone inflation readings, could impact sentiment and direction.
– Speculation around future Federal Reserve rate cuts remains high, and markets are on edge for clues about the next shift in policy.
Major Forex Pairs Analysis
EUR/USD: Consolidation With Bullish Momentum Building
The EUR/USD pair has been consolidating above the important 1.0800 support level. Bulls have recently taken control, pushing the pair towards 1.0900 as optimism about the Eurozone economy improving meets softening U.S. inflation data.
Technical Outlook:
– The pair sits above both the 50-day and 200-day simple moving averages, suggesting medium-term bullish sentiment.
– Resistance comes in at 1.0930, with further resistance around 1.1000, a psychological level that could offer strong selling pressure.
– Support is found at 1.0830, with a deeper level at 1.0780 if the current upward move stalls.
Fundamentals:
– Traders are monitoring comments from European Central Bank (ECB) officials, particularly regarding future rate actions.
– U.S. economic data remains mixed, with recent softness in inflation suggesting the Fed may adopt a less hawkish policy stance.
GBP/USD: Sterling Eyes 1.2800 on Consumer Confidence
Sterling has remained resilient, and the GBP/USD is holding near key resistance at 1.2750 as traders price in a pause in Bank of England policy tightening. The pound is receiving some support from better-than-expected retail sales and improved consumer sentiment.
Technical Outlook:
– The pair has found robust support at 1.2630 and is trading in an upward channel forming since mid-August.
– Resistance lies at 1.2800, followed by a stronger barrier near 1.2850.
– A break above the upper channel could see a move toward 1.2900, especially if the USD weakens.
Fundamentals:
– Preliminary GDP data from the UK reinforces expectations that the economy may avoid a recession in late 2025.
– BOE Governor Bailey’s upcoming statements could shift expectations around further rate adjustments.
USD/JPY: Dollar Bulls in Check as Yen Finds Strength
After weeks of sustained upward movement, the USD/JPY pair has begun to show signs of topping out near the 150.00 level, a region perceived as critical due to prior government intervention in foreign exchange markets.
Technical Outlook:
– Resistance has formed near 149.80, and price action is beginning to show lower highs.
– Initial support rests at 147.50 with secondary support forming near 146.80.
– A break below 146.50 could trigger stops and accelerate a downward correction quickly.
Fundamentals:
– Traders continue to monitor the Bank of Japan, which has been hinting at potential policy normalization in late 2025.
– Any further strengthening of the yen may be matched by verbal or market
Read more on USD/CAD trading.