Weekly Forex Forecast: October 26–31, 2025
Written by: DailyForex.com
As we approach the final days of October 2025, forex traders are focusing on key global macroeconomic indicators, technical patterns, and central bank communications that are expected to influence currency price action. This period is marked by heightened expectations around the Federal Reserve’s monetary policy path, along with economic developments in Europe, the UK, Japan, and emerging markets. As such, short- and medium-term traders should assess price action carefully, especially around major technical levels.
Here is a comprehensive technical outlook on several major currency pairs for the trading week of October 26–31, 2025.
EUR/USD Technical Outlook
The EUR/USD showed resilience over the past week, with bullish momentum attempting to overcome key resistance. However, price action remains constrained below the 1.0700 psychological level — a barrier that has rejected prices on several occasions.
– Key support is established at 1.0510, aligning with a previously tested low.
– Resistance zones are stacked between 1.0690 and 1.0730.
– The 50-day moving average is pointing downward, suggesting continued bearish sentiment over the long term.
– A break above 1.0730 would signal a stronger bullish trend, with upside potential targeting 1.0830.
– Conversely, a move below 1.0510 may see the pair extend toward 1.0450 and then 1.0350 support levels.
Fundamentally, the EUR remains vulnerable to concerns over Eurozone economic stagnation. The European Central Bank’s dovish stance adds further weight to the downside scenario.
GBP/USD Technical Outlook
The British pound has shown strength, partially supported by better-than-expected UK inflation and retail sales data. However, bulls must clear key resistance to extend gains deeper into October.
– Immediate resistance lies at 1.2320, a level that has capped prices several times in recent weeks.
– Support is seen around the 1.2095 region.
– Indicators show mixed signals: the RSI is slightly above 50, implying mild bullish bias.
– A break above 1.2320 could lift the pair toward the 1.2430 area.
– On the downside, a daily close below 1.2095 may accelerate selling toward 1.2000.
The Bank of England’s outlook remains a key catalyst for this pair. Traders should monitor comments from policymakers as the central bank continues to navigate inflationary pressures and sluggish growth.
USD/JPY Technical Outlook
The Japanese yen remains under pressure, largely driven by diverging monetary policies between the Bank of Japan and the US Federal Reserve. The USD/JPY reached multi-decade highs recently, trading above the 150.00 level.
– Psychological resistance remains at 150.80, with potential to explore 151.90 if broken.
– Support is identified near 149.40, followed by the 148.30 region.
– The uptrend remains firmly intact despite overbought technical conditions.
– RSI remains above 70, warning of a possible short-term pullback or correction.
– A failure to hold above 150.00 could trigger a short-term reversal down to 147.90.
The upcoming Bank of Japan meeting and intervention risks by Japanese officials must be watched. Jawboning or direct intervention could cause sharp, unexpected reversals in USD/JPY.
AUD/USD Technical Outlook
The Australian dollar remains under pressure as falling commodity prices and concerns around Chinese economic growth weigh on sentiment. The AUD/USD has bounced from key support but faces a challenging resistance landscape ahead.
– The pair found support at 0.6270, near the yearly low.
– Resistance is indicated at 0.6415 and then at 0.6485.
– Bollinger Bands are tightening, pointing to a pending breakout.
– The MACD line remains flat, showing indecision, which could foreshadow a
Explore this further here: USD/JPY trading.