**Pairs in Focus: 26th to 31st October 2025**
*By Adam Lemon, courtesy of DailyForex*
As the final days of October unfold, the forex market braces for a week poised between anticipation and uncertainty. Fundamental drivers, technical signals, and shifting sentiment combine to create an intricate technical outlook for the major currency pairs. The following article dissects the key forex pairs to watch between the 26th and 31st of October 2025, drawing directly on insights from Adam Lemon’s analysis at DailyForex.
—
## Market Background
The last days of October are often marked by volatility, spurred by month-end flows, central bank anticipation, and the culmination of economic data releases. This week is particularly notable for:
– Upcoming rate decisions from top central banks.
– Quarterly earnings and economic reports influencing risk appetite.
– Continued debates about inflation persistence and growth outlooks.
– Price action providing critical clues as traders seek clarity from recent market ranges.
Given these factors, this week’s focus lies primarily on macroeconomic data and evolving technical patterns across major forex pairs.
—
## EUR/USD: Testing the Range Boundaries
The world’s most traded currency pair has been displaying rangy behavior, consolidating between critical support and resistance areas. Key elements to monitor for EUR/USD this week include:
– **Support:** The 1.0500 area has acted as robust support and the lower boundary for several weeks.
– **Resistance:** The 1.0700 to 1.0750 region remains formidable resistance.
– **Technical Indicators:** The pair hovers near its 50-day moving average, suggesting an equilibrium phase. RSI readings are neutral, reflecting hesitation in directional conviction.
– **Fundamentals:** With the ECB refraining from surprising markets, short-term moves are likely to respond primarily to US data, especially GDP and inflation releases.
*Forecast:* Unless a breakout materializes, expect sideways action with sudden volatility on US data.
—
## GBP/USD: Sterling Awaits Clarity
GBP/USD has mirrored the broader dollar dynamics, with the recent Bank of England meeting creating ripples.
– **Support:** 1.2100 is a pivotal support, surpassed only by the 1.2000 psychological level below.
– **Resistance:** The 200-day moving average, near 1.2350, acts as first resistance; 1.2500 is the next target if momentum builds.
– **Indicators:** Mixed MACD signal and a neutral RSI. Price still struggles to recapture its mid-term moving averages.
– **Events to Watch:** Domestic inflation data, coupled with the latest UK retail sales, could provide the directional push.
*Forecast:* Strength above 1.2350 may open the door to a reversal, while a move below 1.2100 suggests renewed vulnerability.
—
## USD/JPY: Potential for Intervention
The Bank of Japan’s policy stance and growing speculation about official intervention have dominated the narrative in USD/JPY.
– **Support:** The 150.00 barrier is psychologically important and has acted as a level authorities are wary to let break too far.
– **Resistance:** The 152.00 level is viewed as a red line for intervention, with any breach likely to trigger volatility.
– **Trend:** The uptrend remains intact, but momentum indicators warn of overbought conditions.
– **Macro Factors:** Any statement or action from Japanese officials is likely to create sharp, short-lived moves.
*Forecast:* Absent intervention, an upward grind remains possible, but traders should be alert for headline-driven reversals.
—
## AUD/USD: Testing the Base
The Australian dollar faces headwinds from both risk-off sentiment and a relatively defensive RBA.
– **Support:** 0.6280 is a near-term support level, where buyers have previously emerged.
– **Resistance:** 0.6400 is the first target to the upside, with 0.6460 above.
– **Technical Picture
Read more on GBP/USD trading.