**Forex Technical Major Pairs Analysis – August 26, 2025**
*Original article by Yohay Elam, as referenced on FXDailyReport.com.*
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Forex market participants continue to eye macroeconomic shifts, central bank rhetoric, and ongoing geopolitical developments as we edge through the final week of August 2025. For today’s session, a technical deep-dive on major currency pairs—including EUR/USD, GBP/USD, USD/JPY, AUD/USD, and USD/CAD—reveals pivotal levels, trends, and scenarios that traders should consider. Drawing from the analysis by Yohay Elam at FXDailyReport.com, this article provides an extensive breakdown of current market sentiment and price action setups for each pair.
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## EUR/USD Technical Analysis
The EUR/USD has been trading under significant pressure, with the pair recently testing multi-month lows amid diverging economic performances in the eurozone compared to the United States.
### Key Highlights
– **Downtrend Structure:** The pair maintains a bearish profile, entrenched below its 50-day and 200-day moving averages.
– **Support Levels:** Nearest significant support lies at 1.0780, with further downside potential toward 1.0700 if momentum persists.
– **Resistance Levels:** The 1.0880 and 1.0950 areas offer immediate and secondary resistance, respectively, forming a cap that buyers have failed to breach in recent sessions.
### Momentum & Indicators
– **RSI:** The Relative Strength Index continues to hover in bearish territory but does not yet signal oversold conditions, leaving room for additional declines.
– **MACD:** The Moving Average Convergence Divergence remains negative, reinforcing the bearish momentum.
### Outlook
– **Bearish bias continues as long as EUR/USD stays below the key resistance at 1.0950.**
– **A decisive close below 1.0780 could accelerate the drop toward the next support at 1.0700.**
– **Should the pair recover above 1.0950, a short-term reversal toward the 1.1050–1.1100 area may be possible, especially if eurozone data surprises to the upside.**
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## GBP/USD Technical Analysis
GBP/USD has exhibited a pronounced downtrend, paralleling the overall dollar strength while grappling with lingering economic concerns in the UK, including subdued growth forecasts and sticky inflation.
### Key Highlights
– **Trend Direction:** Downward, with lower highs and lows evident across multiple timeframes.
– **Support Zone:** Critical support is at 1.2600, which has provided a strong floor. Should selling intensify, look for 1.2500 as the next line of defense.
– **Resistance Levels:** Rebounds are anticipated to meet resistance near 1.2760 and, if broken, the 1.2840 area.
### Technical Signals
– **Bollinger Bands:** Price remains at or below the lower Bollinger Band, reflecting persistent bearish momentum but raising the odds of an eventual corrective pullback.
– **Stochastic Oscillator:** Readings suggest the pair may soon encounter oversold conditions.
### Outlook
– **Sustained closes below 1.2600 would likely embolden bears, targeting 1.2500 and potentially lower.**
– **A corrective rebound may materialize if GBP/USD manages to close above the 1.2760 resistance, shifting focus toward 1.2840.**
– **UK macro releases, particularly those related to inflation and retail sales, will be closely monitored for potential catalysts.**
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## USD/JPY Technical Analysis
USD/JPY continues its march higher, reinforcing a persistent uptrend driven by carry trade interest and still-stark policy divergence between the US Federal Reserve and the Bank of Japan.
### Key Highlights
– **Bull Trend:** The pair posts consistent higher highs and higher lows, recently breaking above 157.00.
– **Support Levels:** Initial support is at
Read more on GBP/USD trading.