This rewritten article is based on the original piece by DailyForex, titled “Pairs in Focus: 12th to 17th October 2025,” and has been expanded to provide a comprehensive technical analysis of key currency pairs in the Forex market. Further insights from reputable sources such as TradingView, FXStreet, and ForexLive have been incorporated to enhance the analytical depth and provide a broader view of market dynamics for the week in question.
Title: Forex Market Outlook: Technical Analysis of Key Pairs (October 12–17, 2025)
Author: Adapted from the original analysis by DailyForex with expanded commentary and updated data.
The week of October 12–17, 2025, presents significant trading opportunities and risks across major and cross-currency pairs as markets respond to shifting fundamentals, technical signals, and geopolitical developments. Below is a breakdown of the major currency pairs in focus this week and what traders need to watch for.
EUR/USD: Bearish Pressure Near Critical Support
The Euro began last week attempting to reclaim the 1.0700 territory but quickly found resistance amid continued strength in U.S. Treasury yields and cautious sentiment ahead of the European Central Bank (ECB) minutes.
Key Technical Levels:
– Resistance: 1.0700, 1.0740
– Support: 1.0530, 1.0475
– RSI: Sitting near 40, indicating weak momentum
– MACD: Below signal line, showing a continuation of the bearish trend
Fundamental Overview:
– ECB policymakers remain on hold, keeping rate decisions cautious.
– U.S. labor market data remains robust, supporting further Fed hawkishness.
– Energy price volatility due to Middle East concerns could weigh on the Eurozone economy.
Outlook:
– A break below 1.0530 could open a path to 1.0475 or lower.
– Bulls must reclaim the 1.0700 mark to reestablish upside momentum.
– Traders should monitor U.S. CPI data and ECB commentary later in the week.
GBP/USD: Range-Bound But Vulnerable Below 1.2250
The British pound remains challenged against the U.S. dollar as uncertainty about the Bank of England’s monetary policy stance continues. Despite inflation still above the target, the BoE is expected to pause further rate hikes, limiting GBP upside.
Technical Overview:
– Resistance: 1.2300, 1.2430
– Support: 1.2120, 1.2000
– RSI: Neutral at mid-40s, suggesting indecision
– Daily moving averages: 20-day MA acting as strong resistance
Important Drivers:
– UK GDP figures showed mild contraction in services.
– U.S. economic strength gives the dollar broad support.
– UK Gilts yields softening relative to Treasuries adds downside risk.
Outlook:
– Consolidation likely to continue between 1.2120–1.2300.
– A break below 1.2120 opens risk for testing 1.2000 psychological level.
– Weaker UK retail sales or dovish BoE tones will intensify bearish sentiment.
USD/JPY: Rally Continues Towards Multi-Year Highs
The USD/JPY pair remains deeply entrenched in an uptrend, driven by widening yield differentials between U.S. and Japanese bonds. The Bank of Japan maintains its ultra-loose monetary policy, reinforcing Yen weakness.
Technical Structure:
– Resistance: 150.80, 151.95 (2022 highs)
– Support: 148.50, 147.60
– RSI: Above 70, indicating overbought but strong bullish momentum
– MACD: Steeper incline, signaling upward continuation
Macro Factors:
– BoJ Governor Ueda reaffirmed dovish policy intentions.
– Intervention speculation grows as Yen hits 150, the same level that triggered government action in 2022.
– U.S. CPI numbers
Read more on USD/CAD trading.