**Pairs in Focus: 3rd to 8th August 2025 – Forex Technical Analysis**
*Source & Credit: DailyForex, by Adam Lemon*
—
As the first full trading week of August 2025 unfolds, global currencies will be tested by a range of technical and fundamental factors. The recent maneuverings in US monetary policy, ongoing geopolitical risks, and erratic energy price dynamics continue to drive volatility and challenge even the veteran trader’s convictions. This weekly technical review shines a spotlight on the most significant currency pairs to watch, based on price action, key levels, trend strength, and prevailing market sentiment.
### Overview
The August landscape is marked by tightening from major central banks—though at diverging paces—while equities flirt with year-highs, and commodities see whipsaw volatility. The US Dollar Index (DXY) demonstrates mild resilience following mixed macroeconomic data, but currency traders remain cautious ahead of the upcoming Federal Reserve verdict and a dense economic calendar.
**Key Themes This Week:**
– Subdued risk appetite as traders brace for macro data releases
– DXY tests support amid ambivalent Fed signals
– EUR/USD at a technical crossroads facing Eurozone PMIs and US labor data
– GBP/USD reaction to BoE policy stance
– USD/JPY volatility persists as Bank of Japan commentary surfaces
– Gold marks a safe-haven bid, challenging resistance
Let’s distill the technical highlights and outlook for the major pairs during the week of August 3rd to August 8th, 2025.
—
## EUR/USD: Bulls Battle for Direction Amid Crosswinds
The EUR/USD pair enters the week at a technical inflection point after a multi-week consolidation. The latest readings from both European and US labor markets, as well as inflation expectations, keep traders on edge.
**Daily Chart Overview:**
– Support: 1.0760–1.0780 zone (recent swing low)
– Resistance: 1.0920–1.0950 (50-day and 200-day SMA cluster, prior rejection)
– RSI: Hovering near 50, indicative of a lack of momentum
– Volume: Slightly elevated around support, signaling active defense by buyers
**Technical Insights:**
– An uptrend from Q2 moderated in July, stalling below 1.1000.
– Bears are pressing for a downside break, but a clean move below 1.0750 is needed for confidence.
– Bullish continuity will rely on a daily close above 1.0920, opening the path to 1.1000 and higher.
– The pair repeatedly tests but fails to sustain rallies above its 200-day moving average.
**Watch For:**
– Diverging ECB and Fed rhetoric after the latest inflation reads.
– Reaction to Germany and France’s PMI releases.
– Strong US NFP print could trigger a downside test of 1.0700.
**Trading Strategy Ideas:**
– Range traders may buy dips at 1.0760/80 with tight stops.
– Breakout traders should look for a close above 1.0950 or under 1.0750 for confirmation.
—
## GBP/USD: Sterling Faces Crucial Test on BoE Action
The British pound’s fortunes hinge on whether the Bank of England’s forthcoming decision is seen as hawkish amid sticky inflation and economic slowdown signals.
**Daily Chart Overview:**
– Support: 1.2700, then 1.2620 (secondary support aligned with the May low)
– Resistance: 1.2870–1.2900 (recent highs, Fib retracement cluster)
– Trend: Sideways, with tentative higher lows on the 4-hour chart
– MACD: Shows contraction, prepping for a breakout move
**Technical Insights:**
– GBP/USD has lacked clear direction, oscillating in a 1.2620–1.2870 range for several weeks.
– Commitment to
Read more on GBP/USD trading.