Pairs in Focus: September 7–12, 2025
Originally written by Fadi Steitie at DailyForex.com
Overview
The trading week from September 7 to 12, 2025, presents a number of technical patterns and fundamental catalysts poised to influence the Forex market. The upcoming session will be largely shaped by economic reports from the US, European Union, and Asia-Pacific regions, along with continuing speculation over monetary policies, particularly those of the Federal Reserve and European Central Bank. Traders should remain vigilant and ready to capitalize on directional volatility emerging from interest rate projections, GDP figures, and inflation data.
This week’s market outlook covers technical setups and fundamentals for major pairs including EUR/USD, GBP/USD, USD/JPY, and commodities such as Gold and Crude Oil. Let’s examine each in detail.
EUR/USD: Awaiting a Breakout
The euro continued to trade defensively last week, reflecting concerns over stagnating economic data in the Eurozone and continued divergence in interest rate expectations with the Federal Reserve. As of the beginning of this week, the EUR/USD pair hovered close to the 1.0740 level, lacking a clear directional bias.
Key Technical Observations:
– Support Levels: 1.0700, followed by 1.0640
– Resistance Levels: 1.0785, then 1.0850
– The pair remains within a defined descending channel on the daily chart
– RSI remains below the 50-line, signaling continued bearish momentum
– The 50-day moving average is acting as a dynamic resistance, capping upside movements
Moving Forward:
– A break below 1.0700 would reinforce bearish sentiment and open the path toward the 1.0640 level
– In contrast, a break above the 1.0785 resistance could shift short-term control back to bulls, with 1.0850 as the next key objective
Fundamental Insights:
– The euro remains pressured by economic underperformance in Germany and France
– ECB officials have been cautious, signaling delayed or limited interest rate hikes
– Market expectations for further action from the Federal Reserve continue to support the US dollar in this pairing
Trading Strategy:
– Sell on rallies near resistance if no bullish breakout materializes
– Long trades only to be considered above 1.0785 with tight stop-loss orders
GBP/USD: Cautious Optimism amid Diverging Monetary Trajectories
The British pound has demonstrated relative resilience, supported by modest economic progress and trader sentiment that the Bank of England might take a slightly more hawkish stance compared to the ECB. The GBP/USD pair closed last week around the 1.2640 level and now faces technical resistance zones.
Technical Levels:
– Support: 1.2590 and 1.2525
– Resistance: 1.2705 and 1.2780
– The pair is forming a series of higher lows, indicating possible bullish momentum
– A triangle pattern appears to be forming on the 4-hour chart, often preceding major breakouts
Indicators:
– MACD is flatlining, suggesting a potential for sudden directional movement
– Volume is decreasing, indicating indecision ahead of upcoming economic data
Macroeconomic Drivers:
– Data from the UK housing and labor markets will be key this week
– Comments from BoE policymakers could sway sentiment, especially any indication of divergence from the Fed
– US CPI data will also carry transatlantic implications, affecting both USD flows and GBP sentiment
Trading Outlook:
– Bullish breakout confirmation required above 1.2705 to target 1.2780
– Short-term bears may engage near the resistance zone if upward momentum stalls
– Risk management is critical due to high scheduled economic events
USD/JPY: Dollar Dominance Persists
The Japanese yen continues to weaken against the US dollar, kept under pressure by the contrasting policies between the Bank of Japan (BoJ) and the Fed. While the US economy
Read more on EUR/USD trading.