Title: Forex Weekly Outlook: Key Currency Pairs in Focus (12–17 October 2025)
By DailyForex Analysts, Synthesized and Expanded by Assistant
As global financial markets continue to react to economic data and shifting monetary policies, traders should pay close attention to key forex trends that could influence price action in the week ahead. Between October 12 and October 17, 2025, several major currency pairs are showing technical setups for potential opportunities, particularly as central banks remain active across the globe. This article reviews the top forex pairs to watch during the week and offers in-depth analysis on the technical and fundamental factors shaping their trajectories.
The following currency pairs are in focus:
– EUR/USD
– GBP/USD
– USD/JPY
– AUD/USD
– USD/CAD
Let’s break down each of these major pairs by examining technical chart patterns, key support and resistance zones, and developments in macroeconomic data.
EUR/USD: Bearish Momentum Remains in Control
The euro has struggled against the dollar recently, weighed down by economic stagnation in the Eurozone and continued strength in the US labor and consumer sectors.
Key insights:
– The pair has fallen below the crucial 1.0500 support level, currently hovering near 1.0460. This move confirms the establishment of a bearish structure on the daily timeframe.
– Technical indicators such as RSI remain below 50, reflecting downward momentum.
– Price has formed lower highs and lower lows, typical of a sustained downtrend.
– If the 1.0450 area breaks decisively, EUR/USD could continue toward the next key support at 1.0350.
– Resistance to the upside is near 1.0600, the previous area of consolidation.
– The European Central Bank (ECB) has maintained a relatively neutral tone recently, while the Federal Reserve continues to emphasize data-driven decisions which lean hawkish given recent US economic resilience.
Screenshot from DailyForex Analysis:
“EUR/USD continues to trend lower, reflecting Eurozone’s weak industrial output and the US’s robust inflation and employment prints,” DailyForex notes.
Outlook:
Selling rallies remains the preferred strategy unless a daily close above 1.0600 suggests a reversal or strong short-covering.
GBP/USD: In a Range but Tilting Bearish
The British pound remains confined to a medium-term descending channel as economic activity in the UK shows signs of slowing. Market sentiment stays cautious following dovish remarks by the Bank of England (BoE).
Key points:
– Support lies near the 1.2100-1.2150 zone, which has acted as a base in previous sessions.
– Immediate resistance is at 1.2300, with a stronger barrier placed at 1.2450.
– The BoE has recently hinted at the end of its rate-hiking cycle, reducing bullish enthusiasm for GBP.
– Manufacturing and construction PMIs declined further, triggering domestic growth concerns.
– Technical traders are watching for a break below 1.2100, which could open the door for losses toward the 1.2000 psychological level.
Side note from DailyForex:
“The GBP/USD remains fragile and dependent on how dovish the BoE remains while the Fed reiterates its hawkish bias.”
Outlook:
Cautious bearishness is warranted unless fresh UK data surprises to the upside. A breakout lower would validate the next leg downward.
USD/JPY: Bulls in Command as Yen Weakens
One of the most notable stories in forex markets this month is the continued weakness of the Japanese yen. This trend has persisted despite verbal intervention threats from Japanese policymakers.
Overview:
– The USD/JPY pair is holding above the 149.00 level, eyeing another test of the psychological 150.00 resistance.
– Japanese authorities have reiterated concern over the yen’s depreciation, but actual market action remains limited.
– The pair’s bullish structure has
Read more on USD/CAD trading.