Forex Technical Analysis – Major Pairs – October 10, 2025
By: FXDailyReport.com
The forex market displayed mixed signals heading into October 10, 2025, with major currency pairs exhibiting varying levels of volatility and direction. Traders were observing technical levels closely as market participants assessed global economic data, central bank policies, and geopolitical developments. Below is a detailed technical analysis of the most prominent forex pairs, based on observations from FXDailyReport.com.
EUR/USD: Bearish Bias Continues Beneath Key Resistance
The EUR/USD currency pair faced further downward momentum during the early session on October 10 as risk appetite was dampened by inflation concerns and monetary tightening expectations from the Federal Reserve. After failing to sustain a break above the 1.0600 resistance level, the pair reversed its gains, continuing its ongoing bearish trend.
Key Observations:
– Resistance Level: 1.0600, acting as a strong psychological and technical barrier.
– Support Level: Immediate support resides near 1.0450. A break below this level could expose the 1.0350 and 1.0250 regions.
– Moving Averages: The 50-day simple moving average (SMA) remains below the 200-day SMA, affirming a bearish trend continuation.
– RSI Indicator: The Relative Strength Index stays below 50, indicating persistent bearish sentiment.
Outlook: As long as the EUR/USD remains below the 1.0600 level, the bearish outlook is favored. A fresh push toward the recent 2025 low near 1.0300 remains possible. Only a sustained close above 1.0600 would begin to challenge the downtrend structure.
GBP/USD: Flat with Bearish Overtones
Sterling showed indecisiveness against the US dollar but maintained a bearish undertone. The GBP/USD pair oscillated around the 1.2200 handle with no significant catalyst to break out of its range. Initial recovery attempts continue to be capped by overhead resistance levels.
Key Observations:
– Immediate Resistance: 1.2300 acts as a ceiling for short-term rallies.
– Support Zone: 1.2100 to 1.2000 remains a key area to monitor. If broken, the pair could test lows near 1.1800.
– Moving Averages: The 20-day and 50-day SMAs are trending downward and moving close together, signaling low momentum but negative bias.
– MACD Indicator: Bears maintain control with the MACD staying in negative territory, though a flattening curve suggests possible consolidation ahead.
Outlook: GBP/USD remains vulnerable to further losses unless buyers reclaim 1.2300 and confirm the move with higher support levels. Until then, rebounds are expected to be short-lived.
USD/JPY: Strong Bullish Momentum Continues
The USD/JPY pair extended its bullish march to fresh yearly highs, driven mainly by diverging monetary policies between the Federal Reserve and the Bank of Japan. The yen weakened sharply as Japan’s central bank reiterated its accommodative stance amid rising global yields.
Key Observations:
– Resistance Zone: 149.50 to 150.00 represents a potential ceiling. A break above this barrier could invite further buying toward 152.00.
– Support Level: Immediate support is found around 147.50, which was a former resistance.
– Moving Averages: Both the 50-day and 100-day SMAs are sloping upward, offering strong trend validation.
– RSI Indicator: The RSI has entered overbought territory, warning of a potential short-term pullback but not necessarily a reversal.
Outlook: While the pair appears stretched in the short term, the broader structure remains strongly bullish. Any corrections will likely be limited unless the pair falls below the rising 20-day SMA. Traders may look to “buy on dips” as long as fundamentals support dollar strength.
AUD/USD: Under Pressure Amid Mixed Commodities
The Australian dollar weakened modest
Explore this further here: USD/JPY trading.