This is a rewritten and expanded version of the article originally authored by Chris Lewis and published on DailyForex.com. The content has been adapted and extended to include detailed analysis of major currency pairs for the trading week from August 3rd to August 8th, 2025.
Weekly Forex Technical Outlook: August 3–8, 2025
(Adapted from the original article by Chris Lewis, DailyForex.com)
This week’s Forex trading landscape presents several compelling setups across major currency pairs. As central banks continue to navigate inflationary pressures and global macroeconomic shifts, volatility remains evident in the charts. Technical analysis continues to be a vital tool for traders looking to capture price actions across key levels.
Here is an in-depth look at major pairs in focus for the week ahead, leveraging technical indicators, recent price behaviors, and potential trading strategies.
EUR/USD: Consolidation Continues with Bearish Bias
The EUR/USD remains under pressure as traders react to mixed economic data from the eurozone and the persistent strength of the US dollar. The pair continues to trade in a tight range between 1.0800 and 1.0900.
Key Technical Highlights:
– Resistance remains strong near the 1.0900 level, a psychological barrier and previously tested supply zone.
– Support at 1.0800 continues to provide a firm base, but a break below this region could signal further downside movement.
– The 50-day Exponential Moving Average (EMA) is prominently acting as dynamic resistance, currently hovering just below the 1.0900 region.
– The Relative Strength Index (RSI) remains neutral-to-bearish around the 45-50 mark, suggesting weakening bullish momentum.
Potential Trading Strategy:
– A daily close below 1.0800 could pave the way for a drop towards 1.0725, and potentially down to 1.0650 in a risk-off environment.
– If bulls manage to reclaim 1.0900 and sustain a breakout, look for a move toward 1.1000 before the next psychological barrier at 1.1050.
GBP/USD: Range-Bound with Downside Risk
The British pound has struggled to gain traction as economic uncertainty clouds bullish sentiment. Though the Bank of England remains cautious about policy shifts, the overall global sentiment toward the dollar has kept the GBP/USD contained.
Technical Factors to Watch:
– The pair is stagnating between 1.2700 and 1.2850, with noticeable failure to close above the 1.2850 resistance on several attempts.
– The 200-day EMA sits nearby, signaling an overall lack of strong directional bias.
– Momentum indicators such as the MACD show flattening histogram bars, indicating reduced volatility and indecision.
Potential Strategy Considerations:
– A confirmed breakdown below 1.2700 can expose the pair to 1.2600 and eventually to 1.2500, if broader risk aversion persists.
– For upward movement, a close above 1.2850 opens a path toward 1.3000, although fundamental drivers will be necessary to sustain it.
USD/JPY: Bullish Momentum Intact
The USD/JPY continued to push higher as divergent policies between the Federal Reserve and the Bank of Japan grip the pair. The ultra-loose monetary policy in Japan contrasts heavily with the relatively hawkish Fed outlook.
Key Technical Observations:
– The pair exhibits clear bullish structure, forming higher highs and higher lows across the daily chart.
– Support is found at 143.00, a prior breakout zone that has now become a demand area.
– Noteworthy resistance lies at the 145.50 level, with intermediate barriers around 144.50.
– Moving averages continue to slope upward, particularly the 20-EMA and 50-EMA, supporting the bullish trend.
Trading Opportunities:
– Buying on pullbacks toward 143.00 or 143.50 offers a favorable risk-to-reward ratio
Explore this further here: USD/JPY trading.