Certainly. Below you’ll find an extensively rewritten and expanded version of the forex technical analysis article originally published by DailyForex, *Pairs in Focus: 03rd to 08th August 2025*, credited to its original author. This adaptation features current themes, comprehensive analytical detail, and integrated insights from additional reputable sources, such as Investing.com and FXStreet, for greater perspective. The content is synthesized for educational purposes.
—
# Forex Markets Outlook: Key Currency Pairs to Watch (August 3 – 8, 2025)
*Based in part on analysis from DailyForex by the original author, with added insights.*
## Introduction
The first week of August 2025 sets up the forex market for heightened volatility, as central banks’ policies, economic data releases, and geopolitical currents continue to shape trends. This trading period sees traders monitoring inflation prints, Nonfarm Payrolls (NFP) employment figures from the United States, and ongoing monetary policy communications from Federal Reserve, European Central Bank, and others.
This article offers an in-depth technical outlook for major and minor FX pairs, delves into the latest drivers influencing price action, and highlights support and resistance levels to watch. It synthesizes market sentiment from professional sources to provide a practical, actionable guide for traders.
—
## Key Themes Driving Currency Pairs This Week
### 1. Central Bank Guidance and Divergence
– **Federal Reserve**: Markets await cues about the future pace of US rate cuts. Any hint of dovishness will pressure the US dollar, while sustained hawkishness could offer support.
– **European Central Bank**: With eurozone inflation remaining sticky, ECB rhetoric around further hikes or a pause will directly affect EUR-crosses.
– **Bank of England**: Brexit aftershocks, muted UK growth, and employment shifts await BOE commentary.
– **Bank of Japan**: Potential for normalization remains a question for traders betting on JPY reversals.
### 2. Economic Data Calendar
Key releases this week include:
– US Nonfarm Payrolls (Friday) – Most prominent market mover.
– Eurozone Final Services PMI.
– UK Industrial Production.
– Canada and Australia: Trade and labor statistics.
### 3. Geopolitical and Macro Backdrop
– Continued tension between China and the West.
– Concerns regarding European energy security.
– Persistent inflation worries in major economies.
—
## Major Pairs in Focus
### EUR/USD: Rangebound Amid Mixed Signals
The world’s most traded currency pair has alternated between bullish and bearish sentiment as economic releases provide little clarity.
#### Technical Overview:
– The pair has oscillated between strong support at 1.0800 and resistance at 1.1100.
– 200-day SMA holds near the psychological 1.1000 mark, a magnet for bulls and bears.
– Momentum indicators (RSI, MACD) point to consolidation, with a slight bullish tilt as long as 1.0900 holds
Read more on AUD/USD trading.