Forex Technical Analysis: Currency Pairs to Watch from August 31 to September 5, 2025
Original analysis by Daniel John at DailyForex
Link to original article: https://www.dailyforex.com/forex-technical-analysis/2025/08/pairs-in-focus-31th-august-to-05th-september-2025/233336
As the forex market approaches the final days of August 2025 and transitions into early September, volatility and trend formations are becoming increasingly relevant for traders looking to take advantage of potential breakouts and reversals. This period is aligning with key economic releases, market sentiment shifts, and annual positioning among institutional traders.
In this week’s technical overview, originally analyzed by Daniel John at DailyForex, the focus is placed on several major currency pairs. These include EUR/USD, GBP/USD, USD/JPY, and AUD/USD, among others. Each pair has presented significant technical behavior, and this comprehensive breakdown includes key support/resistance levels, price action patterns, and forecasts for possible movements throughout the week of August 31 through September 5, 2025.
EUR/USD: Sustained Consolidation Indicates Cautious Market Sentiment
The euro continues to remain in a tight consolidation range against the U.S. dollar. After an extended bullish phase earlier in the year, the pair seems to be struggling to maintain upside momentum above key resistance levels.
Key observations:
– Resistance: 1.0980 remains a significant resistance level. Repeated rejection at this area since early August suggests bears are firmly defending this level.
– Support: 1.0840 is acting as a short-term floor, maintaining price within a narrow corridor.
– RSI (Relative Strength Index): The daily RSI has failed to breach the 60 mark, reflecting limited bullish momentum.
– MACD (Moving Average Convergence Divergence): The MACD indicator remains flat and hovers close to the zero line, further indicating indecision.
Forecast:
The sideways movement is likely to continue until a major economic release or geopolitical event provides a catalyst. According to Daniel John’s analysis, a break above 1.0980 could prompt a move toward 1.1050, while a failure to hold the 1.0840 level may result in a retest of the psychological support at 1.0750.
Tactical strategy for traders:
– Buy orders could be considered above 1.0990 with a target near 1.1050, stop loss at 1.0930.
– Sell orders might be placed below 1.0830 should price surprise to the downside, with a target toward 1.0750.
GBP/USD: Bullish Momentum Faces Resistance at 1.2850
The British pound has outperformed in recent weeks, driven by optimistic UK economic data and relative dollar weakness. While bullish momentum persists, the pair is approaching a significant resistance level that could define the short-term trend.
Technical insights:
– Resistance: The 1.2850 to 1.2890 zone is presenting a formidable resistance barrier. Previous highs in this zone were rejected throughout July.
– Support: A sustained support base sits at 1.2710. This level has provided buying opportunities on multiple occasions.
– Fibonacci Analysis: Retracement levels from the June high to July low show the 61.8% level aligning precisely with 1.2850.
– Trendlines: An ascending trendline from the July low continues to hold, keeping bullish structure intact.
Forecast:
A break and sustained close above 1.2890 would indicate continuation of the uptrend toward 1.3000. Failing that, the pair could fall back to retest the 1.2710 area. The analysis emphasizes a neutral tone unless clear direction emerges in the coming sessions.
Trader positioning considerations:
– Long positions above 1.2900 targeting 1.3000 may offer positive reward-risk ratios.
– Short
Read more on EUR/USD trading.