**Pairs in Focus: 12th to 17th October 2025**
*Adapted from an article by Adam Lemon, DailyForex.com*
As global markets continue to respond to the evolving landscape of monetary policy, geopolitical tensions, and key economic data releases, Forex traders are poised for another week of ample opportunities and risks. This technical analysis for the week ahead, spanning October 12th to 17th, 2025, takes an in-depth look at the major currency pairs. We examine prevailing trends, key support and resistance levels, probable breakout zones, and the macroeconomic catalysts likely to move the markets.
—
## Overview of the Forex Market Environment
The US dollar remains at the center of most FX activity given its role as the global reserve currency. Its recent weeks of outperformance have been fueled by:
– Persistently high US Treasury yields
– Hawkish commentary from Federal Reserve officials
– Mixed but resilient US data
– Geopolitical concerns boosting safe-haven flows
However, as other major central banks adapt their own policies to tame inflation without derailing growth, currencies such as the euro, pound, and yen are each at critical crossroads.
This week brings key inflation data from the United States, United Kingdom, and the Eurozone, alongside a series of central bank appearances and economic releases that may set directional biases.
—
## EUR/USD (Euro/US Dollar)
EUR/USD endured significant downside pressure in recent weeks, struggling against the strength of the greenback. The weeks ahead force traders to weigh whether this pair can stage a recovery or is poised for deeper losses.
### Key Technical Levels
– **Major support**: 1.0470 – Recent lows. A decisive break may accelerate downside momentum toward 1.0350.
– **Immediate support**: 1.0500 zone – Psychological round number; buyers may attempt to defend this level.
– **Resistance to watch**: 1.0710 – Former support turned resistance; could cap upside corrections.
– **Long-term resistance**: 1.0830/1.0850 – A sustained rally above this area needed to suggest a major bullish reversal.
### Technical Outlook
– The pair’s short-term moving averages remain below medium and long-term averages, indicating downside momentum is still in play.
– Momentum oscillators such as the Relative Strength Index (RSI) show the pair is approaching oversold conditions, which raises the prospect of corrective rebounds if triggered by supportive news.
– Downside risks dominate unless EUR/USD climbs back above the 1.0720 zone.
### Macro Catalysts
– **Eurozone inflation data (CPI):** Any sign of stickier-than-expected inflation could shore up the euro if it prompts speculation about further ECB tightening.
– **US inflation and retail sales:** Stronger figures bolster the dollar; weaker prints could provide EUR/USD with a temporary lifeline.
—
## GBP/USD (British Pound/US Dollar)
Sterling has followed the euro lower, with economic uncertainty and political instability weighing on sentiment. However, the UK’s inflation dynamics remain volatile, and this week’s CPI release could set the pair’s tone.
### Key Technical Levels
– **Major support:** 1.2080 – Multi-month lows. Breach may expose 1.2000 then 1.1840.
– **Immediate resistance:** 1.2300 – Near-term pivot; above this, 1.2440 emerges as the next test.
– **Long-term resistance:** 1.2570/1.2600 – Only a close above this would weaken bearish pressure.
### Technical Outlook
– Trend structure remains bearish below descending trendlines.
– RSI approaches oversold territory, hinting at a potential consolidation or corrective bounce.
– A break above 1.2300 could see short-covering, while losses below 1.2080 open up deeper declines.
### Macro Catalysts
– **UK CPI and wage data
Read more on GBP/USD trading.