The following is a rewritten version of the Forex article originally published by DailyForex titled “Pairs in Focus: 12th to 17th October 2025,” authored by Daniel John. This analysis covers key currency pairs in the upcoming trading week, offering insights into potential market direction based on technical indicators and price action. The article is rewritten here to enhance clarity and depth while maintaining alignment with the original content.
Weekly Forex Market Technical Outlook: October 12–17, 2025
By Daniel John (Original Author: DailyForex.com)
As the global financial markets move into the trading week from October 12 to October 17, 2025, Forex traders will be turning their attention to several major currency pairs, which are showing heightened volatility and potential for key breakout movements. The technical analysis of these pairs reveals emerging trends fueled by changes in interest rate expectations, geopolitical tensions, and economic data releases. The following breakdown provides a detailed examination of five major currency pairs and highlights the technical setups that traders should consider.
EUR/USD: Resistance Retest in Focus Amid ECB Outlook
The Euro has recently stabilized following an extended period of bearish momentum, buoyed by hawkish undertones from the European Central Bank (ECB). However, the EUR/USD pair still faces headwinds due to continued uncertainty in the eurozone’s economic recovery.
Key Technical Insights:
– Immediate resistance is located near 1.0725, a level previously tested in late September and early October.
– Momentum indicators such as the Relative Strength Index (RSI) are neutral, hovering near the 50 threshold, indicating a potential consolidation phase.
– The 50-day Exponential Moving Average (EMA) sits at 1.0700, acting as dynamic support.
– On the downside, initial support is seen at 1.0590. A break below this level could expose the pair to extended losses towards the 1.0500 psychological level.
– The EUR/USD daily chart shows a symmetric triangle forming, suggesting a possible breakout on either side as the pair approaches the apex.
Traders should watch the ECB’s upcoming rate expectations and comments from policymakers this week. A dovish tilt could shift the balance back toward the US Dollar, breaking the triangle pattern to the downside.
USD/JPY: Bullish Momentum Persists Despite Intervention Fears
USD/JPY continues to attract significant attention as the pair trades near multi-decade highs. The Bank of Japan (BoJ) remains dovish, and yield differentials with U.S. Treasuries keep the pair well-bid. However, verbal interventions and potential currency support measures from Japanese officials remain a key risk for bullish traders.
Technical Structure:
– Strong resistance is in play near 151.90, a level just shy of the psychological 152.00 ceiling that historically prompts intervention chatter from Japanese authorities.
– The trend remains upward, supported by rising 20-day and 50-day EMAs.
– RSI remains in overbought territory around 73, suggesting a cautionary note for potential reversal or short-term pullback.
– Immediate support lies at 149.80, followed by a more significant zone around 148.10.
Market watchers should monitor for any surprise comments from BoJ officials. While the path of least resistance still points upward, traders should be cautious of potential sharp pullbacks or flash reactions tied to policy statements from Tokyo.
GBP/USD: Struggling Below Key Resistance as Recession Risks Mount
The British Pound remains under pressure due to domestic economic concerns, including stagnating growth figures and lingering inflation. Although the Bank of England (BoE) has paused its hiking cycle, rate differentials with the Federal Reserve put the cable at a relative disadvantage.
Technical Observations:
– GBP/USD is encountering strong resistance near the 1.2300 level, which coincides with a descending trendline visible from mid-September.
– The daily RSI is mildly oversold at 42, leaving room for a potential rebound, although the broader trend remains
Explore this further here: USD/JPY trading.