Title: Forex Currency Pairs in Focus: August 31 – September 5, 2025
Original Author: Bruce Powers (Credit to DailyForex.com)
The Forex market commenced the final segment of August 2025 with crucial developments across major currency pairs. This week’s technical analysis focuses on several key pairs where trends, chart patterns, and market sentiment are combining to shape potential price movements for early September. Traders should remain alert as near-term fluctuations indicate possible trend continuations or reversals. In this analysis, we’ll breakdown the weekly performance potential based on technical indicators and price action across a select group of currency pairs.
EUR/USD Analysis: Consolidation at Major Resistance
The EUR/USD pair recently halted its upward momentum after testing a resistance zone near 1.1000. Buyers have shown resilience, but the lack of strong momentum has introduced a tentative tone. Price action is consolidating along the 20-day and 50-day EMAs, which could provide medium-term direction.
Key Technical Observations:
– The 50-day EMA at approximately 1.0950 acts as immediate dynamic support.
– Daily RSI remains within neutral territory just above 50, indicating balanced bull and bear forces.
– Immediate resistance sits around 1.1000, above which the next level of interest appears near 1.1095.
– A break below 1.0900 may see a test of the 1.0812 swing low.
Price Structure Summary:
The pair is trapped in a tight range but maintains bullish bias above the moving averages. A breakout will likely define momentum into early September.
GBP/USD Analysis: Short-Term Breakout Shows Potential
GBP/USD broke above a descending triangle pattern on the daily chart, surpassing the 1.2780 resistance to trade near a short-term high of 1.2845. This signals buying interest gaining strength after weeks of selling pressure.
Key Technical Observations:
– The breakout occurred on an increase in volume, suggesting market conviction.
– 1.2780 now acts as initial support; sustained trading above this enhances the bullish outlook.
– Next resistance targets lie at 1.2910 followed by 1.2980.
– A drop below 1.2700 would invalidate the pattern breakout and turn focus back to 1.2600 area.
Momentum Indicators:
RSI has edged above 60, reflecting strengthening momentum. Watch for RSI divergence at current resistance if price fails to continue higher.
USD/JPY Analysis: Uptrend Maintained with Ascending Channel
USD/JPY remains in a clear uptrend inside an ascending parallel channel. The pair recently reached resistance near the 147.90 level before pulling back. Technicals still signal upside control, although corrective pullbacks can be expected due to proximity to upper channel boundary.
Price Behavior & Key Levels:
– The 147.90 level is immediate resistance following recent highs.
– Rising 20-day EMA at 146.70 offers minor support, with stronger backing at the 50-day EMA near 145.75.
– If resistance is cleared, next levels to watch are 149.00, and potentially 150.35, a measured move from the late July breakout.
– Breakdown below support could suggest a retest of the 145.00 region.
Technical Outlook:
Structure remains bullish with controlled corrections. Traders could watch for buying opportunities on dips toward trendline support zones.
USD/CHF Analysis: Testing Breakdown Zone
Following multiple rejections at 0.8880, USD/CHF finally retreated and is currently testing a pivotal zone between the 50-day and 200-day EMAs. A decisive move either way will point to the pair’s intentions heading into September.
Technical Highlights:
– Clear breakdown of triangle formation occurred last week.
– Support exists at 0.8770 and 0.8700.
– A close below 0.8700 would suggest further declines toward 0.8580.
– Resistance remains at 0
Explore this further here: USD/JPY trading.