Title: Key Forex Pairs to Watch: August 31 to September 5, 2025
By: DailyForex.com Analysis Team
Original Author: DailyForex.com Analysts
Original Source: https://www.dailyforex.com/forex-technical-analysis/2025/08/pairs-in-focus-31th-august-to-05th-september-2025/233336
The upcoming Forex trading week from August 31 to September 5, 2025, is set against a backdrop of key macroeconomic data releases, central bank commentary, and ongoing geopolitical dynamics. Several currency pairs are positioned at critical technical levels, providing potential trading setups for both short-term traders and long-term investors. This analysis highlights major Forex pairs that are expected to be in focus during the week, with accompanying technical insights and potential strategies for traders.
EUR/USD – Key Resistance Zone in Sight
The EUR/USD pair is testing a significant resistance zone after a sustained rally over the past few weeks. The recent recovery in the euro has been driven by a mix of better-than-expected economic data from the Eurozone and some softness in the US dollar.
Technical Outlook:
– The pair is trading near 1.0950, facing strong resistance around the 1.1000–1.1020 zone.
– 50-day and 200-day Simple Moving Averages (SMAs) are aligned in a bullish crossover, providing medium-term support.
– RSI (Relative Strength Index) is approaching overbought territory, suggesting limited upside without further bullish catalysts.
Key Levels:
– Resistance: 1.1000, 1.1060
– Support: 1.0880, 1.0830
Trading Strategy:
– A breakout above the 1.1020 barrier may open the path toward 1.1100 in the short term.
– However, traders should be cautious of a rejection near 1.1000, which could result in short-term consolidation or corrective moves.
– Ideal strategy: wait for confirmation of a breakout or a clean rejection before entering positions.
GBP/USD – Volatility Expected Around UK Economic Reports
Sterling is poised for increased volatility as the UK is set to release several high-impact economic indicators, including PMI surveys and consumer confidence data. Adding to this, Bank of England commentary may provide further clues about future rate moves.
Technical Outlook:
– GBP/USD has recently bounced off key support at 1.2600 and is now hovering near 1.2750.
– The daily chart shows a consolidative pattern, with tighter price action in the last few trading sessions.
– Bullish structure remains intact unless 1.2600 is broken decisively on a daily close.
Key Levels:
– Resistance: 1.2800, 1.2875
– Support: 1.2660, 1.2600
Trading Strategy:
– Bullish traders may eye a break above 1.2800 for a potential push toward 1.2900 or higher.
– Bearish traders may look for a failed rally toward 1.2800 to initiate short positions, especially if upcoming data disappoints.
– Be cautious during UK data releases, as GBP pairs often exhibit sharp spikes on economic surprises.
USD/JPY – Correction Likely Amid Broad Dollar Weakness
USD/JPY has shown signs of exhaustion after its strong rally. With the dollar coming under pressure and Japanese authorities continuing to closely monitor forex markets, a corrective downside move looks increasingly likely.
Technical Outlook:
– Price action has pulled back below 147.00, with a bearish divergence forming on daily RSI.
– 146.00 acts as initial support, while 145.00 is a key psychological and technical level.
– 20-day SMA is beginning to flatten, indicating possible loss of upside momentum.
Key Levels:
– Resistance: 147.50, 148.30
– Support: 146.00, 145.00
Explore this further here: USD/JPY trading.