**Weekly Forex Technical Outlook: October 12–17, 2025**
*Originally reported by Nicholas Kitonyi for DailyForex*
The week spanning October 12 to October 17, 2025, is expected to offer significant opportunities in the Forex market due to major macroeconomic events and ongoing market trends. Traders continue to respond to monetary policy shifts, inflation data, and geopolitical developments, which are creating volatility across major currency pairs. This article provides a comprehensive technical outlook on several FX pairs, drawing from the original analysis provided by Nicholas Kitonyi for DailyForex and incorporating additional market insights.
## Key Fundamental Themes Influencing FX Markets This Week:
Several macroeconomic factors will influence forex trading during the week. The most notable events include:
– **US Inflation Data (CPI)**: Market participants are closely monitoring the US Consumer Price Index for signs of cooling or persistent inflation. A weaker than expected CPI print could suggest less pressure on the Federal Reserve to keep interest rates elevated, leading to potential dollar weakness.
– **FOMC Meeting Minutes**: Any hawkish notes in the minutes could reignite fears of another rate hike or signal that rates may remain high for longer, supporting the greenback.
– **UK Employment and CPI Data**: The Bank of England is watching labor and inflation data closely, and any signs of wage inflation or sticky CPI could influence GBP pairs.
– **China Trade and Industrial Data**: With China’s economy slowing, markets are watching to see if stimulus measures are producing real effects. The Australian Dollar, often viewed as a proxy for Chinese economic strength, will be particularly sensitive.
## Technical Analysis: Major Forex Pairs To Watch
### EUR/USD: Bearish Bias Below 1.0650
– The Euro has been under pressure as the US Dollar finds renewed strength on expectations of prolonged high interest rates.
– After slipping below the key support at 1.0650, EUR/USD remains in a downtrend.
– The 50-day Exponential Moving Average (EMA) continues to trend below the 100-day EMA, confirming bearish momentum.
**Key Technical Levels**:
– Resistance: 1.0650, 1.0700, 1.0750
– Support: 1.0500, 1.0450, 1.0350
**Outlook**:
– A break below 1.0500 would open the door for a test of March 2023 lows around 1.0350.
– As long as EUR/USD holds below the descending trendline from July’s highs, the bearish outlook remains valid.
### GBP/USD: Potential Reversal Looms with Sterling Support
– GBP/USD tested key psychological support at 1.2100 before rebounding slightly.
– A bullish divergence is forming on the Moving Average Convergence Divergence (MACD), which may indicate an eventual change in trend.
– The 14-day Relative Strength Index (RSI) has been stuck below 50, but signs of recovery could favor a rally.
**Key Technical Levels**:
– Resistance: 1.2275, 1.2400, 1.2550
– Support: 1.2100, 1.2000, 1.1850
**Outlook**:
– A decisive break and close above 1.2275 could confirm a near-term bullish reversal.
– Traders will be watching UK CPI data closely as a driver of future direction.
### USD/JPY: Multi-decade Highs Suggest Overextension
– The USD/JPY surged to highs near 152.00, reaching levels not seen since the late 1990s, raising the threat of intervention from Japanese authorities.
– The pair remains well above its 200-day EMA, and RSI is deeply overbought, historically a cautionary zone for bulls.
**Key Technical Levels**:
– Resistance: 152.00, 154.00
– Support:
Read more on USD/CAD trading.