**Forex Major Pairs Technical Analysis: Outlook and Opportunities**
*Adapted and expanded from an article by Kukil Bora, FX Daily Report*
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The foreign exchange market consistently attracts both new and veteran investors seeking profit from currency movements. Understanding market trends and technical indicators on major currency pairs is central to developing effective strategies. Here, we present a comprehensive technical analysis for key forex pairs including EUR/USD, GBP/USD, USD/JPY, AUD/USD, and USD/CAD, based on the original analysis by Kukil Bora for FX Daily Report, enriched with insights from other reputed market sources.
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## EUR/USD Technical Analysis
The EUR/USD remains the most heavily traded forex pair, often serving as a barometer for global market sentiment. The euro has recently struggled to gain momentum against the US dollar, weighed by mixed economic data from the eurozone and the resilience of the US economy.
**Market Overview (August 2025):**
– **Recent Trend:** The pair has been trading in a bearish channel, marked by lower highs and lower lows over the past several weeks.
– **Short-Term Support:** The key support level near 1.0800 has previously offered some respite to sellers.
– **Resistance Levels:** On the upside, immediate resistance exists at 1.0920, with more significant resistance at 1.1000.
**Key Technical Indicators:**
– The **50-day moving average** is trending below the 200-day moving average, signaling a continuation of the bearish tone.
– The **Relative Strength Index (RSI)** is hovering near 40, suggesting that the pair is approaching oversold conditions, though not quite there yet.
– **MACD analysis** remains bearish as the MACD line stays below the signal line, with no clear divergence.
**Trading Strategy Suggestions:**
– **For Bears:**
– Look for short opportunities on failed rallies towards the 1.0920 to 1.0950 region.
– Initial targets might center around the 1.0800 support level, with a further downside to 1.0700 if the bearish trend persists.
– **For Bulls:**
– Wait for a clear break above 1.1000 to consider long entries, with possible targets at 1.1100 or even higher.
**Additional Insights:**
Economic updates such as eurozone inflation and US federal reserve policy statements can create sharp price swings. Traders should monitor central bank commentary and key data releases closely.
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## GBP/USD Technical Analysis
The GBP/USD pair faces its own set of challenges, oscillating in response to monetary policy divergence and post-Brexit economic adjustments in the UK.
**Market Overview:**
– **Trend:** The pair traded lower, reflecting pressure from disappointing UK economic data and robust US employment numbers.
– **Support Zone:** Near-term support is situated at 1.2550, with further cushioning around 1.2450.
– **Resistance zone:** Resistance lies at 1
Read more on AUD/USD trading.