Title: Forex Pairs in Focus: August 31 to September 5, 2025 – Technical Analysis and Market Outlook
Author Credit: Adapted and expanded from an article originally published by DailyForex
The week of August 31 to September 5, 2025, presents several high-potential trading opportunities across major and minor Forex pairs. Analysts have pinpointed notable levels and trends across pairs like EUR/USD, GBP/USD, USD/JPY, and others. This report takes a deep dive into the technical setups of those currency pairs, highlights prevailing market sentiment, and outlines the key economic data driving potential volatility.
Let’s explore the detailed technical outlook for several key Forex pairs and offer insights to traders preparing for the week ahead.
EUR/USD – Challenges Below Key Resistance Levels
The euro-dollar pair (EUR/USD) continues to navigate a fragile bullish structure as it hovers below the psychological level of 1.1000. The pair experienced consolidation in the previous weeks, struggling to break through resistance while maintaining a higher low formation.
Technical Highlights:
– Resistance levels: 1.1000, 1.1080
– Support levels: 1.0830, 1.0760
– 50-day SMA is moving sideways, suggesting consolidation
– RSI remains near the midline (50), indicating uncertain momentum
– MACD continues to show a potential bullish crossover
Economic Drivers to Watch:
– Eurozone inflation data released this week could influence ECB rate path expectations
– U.S. Non-Farm Payroll (NFP) on September 6 may reinforce USD volatility
Trading Outlook:
Short-term traders should monitor a break above 1.1000 for confirmation of bullish continuation. On the downside, a fall below 1.0830 may reopen the path toward deeper retracements.
GBP/USD – Struggling Between Diverging Forces
The British pound faces conflicting pressures: fading rate hike prospects in the UK and stronger-than-expected U.S. economic resilience. GBP/USD faces stiff resistance near 1.2800 and is currently trading in a consolidative manner.
Technical Highlights:
– Resistance levels: 1.2800, 1.2900
– Support levels: 1.2600, 1.2470
– 200-day SMA at 1.2650 is acting as dynamic support
– Stochastic oscillator moving lower, suggesting downside pressure
Key Fundamentals:
– Bank of England commentary and UK GDP figures may influence future direction
– Relative inflation expectations between the US and UK remain a key narrative
Trading Outlook:
The pair remains a range trade unless a decisive break occurs. A close below 1.2600 may send the pair lower toward the mid-1.2400s, while reclaiming 1.2800 could open room toward 1.2900.
USD/JPY – Bullish Sentiment Remains Supported by Yield Differentials
USD/JPY remains one of the strongest trending major pairs, driven by wide interest rate differentials between the U.S. Federal Reserve and the Bank of Japan. As of early September, the pair is testing fresh multi-month highs above 147.00.
Technical Highlights:
– Resistance levels: 147.80, 148.50
– Support levels: 146.00, 144.90
– RSI above 70, indicating overbought conditions but reinforced by strong trend
– Price supported above 20-day and 50-day SMAs
Fundamental Dynamics:
– US Treasury yields hovering near yearly highs are sustaining upward pressure
– Weak inflation in Japan keeps BoJ policy ultra-loose
Trading Outlook:
The pair is in a bullish structure, and potential pullbacks toward 146.00 may present long entry opportunities. Only a close below 144.90 would weaken the current trend.
AUD/USD – Consolidation Near Lows with a Bearish Bias
The Australian dollar continues to feel pressure from a combination of subdued commodity prices and China
Read more on USD/CAD trading.