The following is a rewritten and expanded version of the original article entitled “Pairs in Focus: 03rd to 08th August 2025”, authored by Mahmoud Abdallah and originally published on DailyForex.com. All insights and technical analyses are credited to the original author.
Forex Market Weekly Overview: 3rd to 8th August 2025
By: Mahmoud Abdallah
The Forex markets entered the first full week of August 2025 with a blend of caution and anticipation. Market participants digested critical economic data from the United States, including the long-awaited Non-Farm Payroll (NFP) report, at a time when global economic trends, central bank policies, and geopolitical uncertainties continue to exert pressure on currency pairs. Several major and minor currency pairs exhibited significant volatility following June and July’s economic announcements, positioning traders for potentially powerful technical patterns.
This week’s focus remains on a few dominant pairs including EUR/USD, GBP/USD, USD/JPY, and AUD/USD. Each demonstrates key technical levels that may guide trading sentiment for the remainder of the month. Let’s examine the projected performance and setups of these pairs over the week, based on both technical analysis and macroeconomic context.
EUR/USD: Bulls Gain Ground But Resistance Looms
The EUR/USD pair started August 2025 with moderate upward momentum, largely fueled by a broadly weaker US dollar after the release of a lower-than-expected US NFP report. European inflation data also showed slight improvement, which helped support the euro.
Key Technical Highlights:
– The pair recorded a move above 1.1000, confirming short-term bullish sentiment.
– Resistance remains firm at 1.1095, which was tested previously in late July.
– Support is now observed at 1.0930, a former resistance level that may act as a floor in case of retracement.
– Daily Relative Strength Index (RSI) sits at slightly over 60, signaling continued upward pressure but nearing overbought territory.
Fundamental Factors:
– A weaker-than-expected NFP report on 2nd August weighed on the US dollar across the board.
– Eurozone Consumer Price Index (CPI) data indicated a year-on-year increase of 2.3 percent, which slightly exceeded market expectations.
– The European Central Bank’s cautious policy tone continues, with no immediate rate hikes projected for Q3 2025.
Strategy Suggestions:
– A break above the 1.1095 level could open a path toward 1.1150 in the shorter term.
– Traders may consider long entries near 1.0940 if bullish support levels hold.
– A reversal below 1.0930 would potentially expose the pair to 1.0875.
Overall, EUR/USD may retain its bullish bias provided the US dollar continues to weaken and eurozone economic figures remain supportive.
GBP/USD: Consolidation Phase Continues with Focus on BoE
The British pound traded in a narrow range against the US dollar during the first days of August, with GBP/USD oscillating between 1.2700 and 1.2820. The market is watching signs from the Bank of England (BoE) about future rate movements amid persistent inflationary concerns in the UK.
Technical Considerations:
– The pair remains above the 50-day moving average, indicating mild bullish control.
– Immediate resistance lies at 1.2840, while solid support appears at 1.2680.
– A symmetrical triangle has formed on the 4-hour chart, often a precursor for breakout movements.
– RSI is neutral, hovering around 50.
Key Drivers:
– UK inflation data for July printed at 4.1 percent year-on-year, raising questions regarding near-term monetary tightening.
– The upcoming BoE meeting scheduled for 8th August is critical for short-term direction.
– Market anticipates the BoE to hold rates steady, yet any unexpected hawkish signals could drive volatility.
Trade Recommendations:
– Consider breakout trades
Read more on EUR/USD trading.