Title: In-Depth Analysis: Key Forex Pairs to Watch (August 3rd-8th, 2025)
Based on the original article by DailyForex, this analysis delves deep into the technical trends, upcoming events, and key price levels of major forex pairs for the week of August 3rd to 8th, 2025. Additional insights from current market sentiment and external analysis are also incorporated in order to provide traders with a comprehensive overview to inform their strategies.
Overview
The first week of August 2025 opens with the forex markets responding to a medley of global catalysts, including central bank pronouncements, economic data releases, and ongoing geopolitical developments. Currency traders are set to navigate a landscape punctuated by possibilities of trend continuations and abrupt reversals, particularly in pairs involving the US Dollar, Euro, British Pound, and Japanese Yen.
Market Sentiment
As of early August:
– The US Dollar continues to attract safe-haven flows amid global economic uncertainty.
– The Euro remains volatile in anticipation of fresh data from the European Central Bank.
– The British Pound fluctuates as traders parse signals from the Bank of England regarding inflation and interest rates.
– The Japanese Yen is in focus as the Bank of Japan maintains its ultra-loose monetary policy stance.
Key Forex Pairs in Focus
**1. EUR/USD**
Technical Outlook:
– The EUR/USD pair starts the week trading near a pivotal support level at 1.0840.
– Immediate resistance is observed near the 1.0920 area, with a broader resistance at 1.1000.
– The 50-day and 200-day moving averages are in focus; the pair remains under its 200-day average, indicating sustained downside pressure.
Factors Influencing the Pair:
– Diverging monetary policy guidance from the Federal Reserve and the ECB.
– Upcoming Eurozone retail sales and US Non-Farm Payrolls.
– Ongoing trade discussions and overall risk sentiment.
Trading Strategies:
– Traders may consider short positions if 1.0840 breaks decisively, targeting 1.0750 and then 1.0680.
– Alternatively, if 1.0920 is breached and sustained, upside targets become 1.1000 and 1.1050.
External Insight:
According to ING analysts, the pair may remain under pressure as long as US macroeconomic data surprises to the upside and European data disappoints.
**2. GBP/USD**
Technical Outlook:
– GBP/USD is consolidating between 1.2770 (immediate resistance) and 1.2650 (support).
– The 1.2600 region remains critical; a clean break here could trigger a sharper decline towards 1.2550.
– Momentum indicators suggest the pair is in a short-term corrective phase.
Key Drivers:
– Markets are closely watching the Bank of England’s Monetary Policy Committee vote splits and forward guidance.
– UK Services PMI and the US labor market report are expected to
Read more on AUD/USD trading.