Forex Technical Major Pairs Analysis – October 20, 2025
Source: FXDailyReport.com
Author: Thomas Rhein
The foreign exchange market continues to showcase dynamic movements across major currency pairs, influenced by a combination of economic indicators, global financial sentiment, and geopolitical developments. Below is an in-depth technical analysis of major Forex pairs as of October 20, 2025. The content is originally authored by Thomas Rhein and adapted here for extended readability and deeper insights.
EUR/USD: Navigating Consolidation Amid Dovish ECB Stance
The EUR/USD pair remains locked in a consolidation range, struggling to establish a strong direction. The European Central Bank (ECB) continues to maintain a dovish policy tone, limiting significant upward momentum in the euro.
Technical Overview:
– The pair is bouncing between a support zone near 1.0500 and a resistance threshold at 1.0650.
– The 20-day exponential moving average (EMA) sits below the 50-day EMA, signaling ongoing bearish sentiment.
– A breakout above 1.0650 could trigger a bullish reversal, aiming for the 1.0800 level.
– On the downside, a break below 1.0500 may lead to new 2025 lows toward 1.0300.
Traders are maintaining a cautious stance, waiting for a clearer directional cue as long as the pair remains confined in this narrow band.
GBP/USD: Bearish Pressure Builds Amid Weak UK Economic Outlook
The British pound is under consistent selling pressure, reflected in the gradual decline of the GBP/USD pair. Concerns surrounding the UK’s economic performance and recent inflationary data add to bearish market sentiment.
Key Technical Insights:
– The pair is trending lower, touching support around 1.2100.
– Resistance lies near 1.2300, the last significant bounce level before the latest downturn.
– The RSI (Relative Strength Index) remains under the 50-level, showing persistent downward momentum.
– The next key downside target is at 1.2000, a critical psychological level.
Unless positive UK economic data or Bank of England policy hawkishness emerges, the pair may continue facing downside risk.
USD/JPY: Bullish Continuation after Consolidation Breakout
The USD/JPY pair has resumed its upward trend following a period of brief consolidation. The strong U.S. dollar, supported by robust treasury yields and speculation around sustained higher interest rates, is propelling this pair.
Technical Details:
– Price action broke out above the recent consolidation ceiling of 149.00.
– The next upside target is projected at the key 152.00 resistance, last touched in 2022.
– MACD (Moving Average Convergence Divergence) indicator shows bullish momentum strengthening.
– Immediate support now shifts higher to the 149.00 breakout point.
The pair remains on a bullish path as long as yields stay elevated and risk appetite supports dollar strength.
AUD/USD: Range Behavior Persists with Bearish Bias
The Australian dollar remains subdued against the U.S. dollar. The AUD/USD pair continues to trade within a tight range, unable to regain bullish traction due to global risk aversion and lack of supportive domestic catalysts.
Technical Analysis:
– Resistance is confirmed at 0.6350, while support is seen near 0.6260.
– The 100-day SMA (Simple Moving Average) is trending downward, indicating long-term bearish pressure.
– A break below 0.6260 could open the way toward a multi-year low of 0.6100.
– Conversely, movement above 0.6350 may test the 0.6450 resistance.
Until a decisive breakout in either direction occurs, the pair is likely to remain in sideways consolidation.
USD/CAD: Consolidating Gains Near Multi-Month Highs
USD/CAD continues to hold near its recent highs as oil prices hover around moderate levels and the Bank of Canada maintains a steady policy approach.
Key Technical Aspects:
Explore this further here: USD/JPY trading.