**Forex Technical Analysis for Major Pairs – October 10, 2025**
*Original insights and structure inspired by Ahmad Faiz at FXDailyReport.com.*
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The foreign exchange market experienced dynamic shifts leading up to October 10, 2025, as geopolitical events, central bank announcements, and technical trends shaped the daily moves of major currency pairs. This article provides a comprehensive analysis of key forex pairs, expanding on daily technical signals, macroeconomic drivers, and potential trading strategies. Additional insights are woven in from other reputable sources to enhance traders’ perspectives.
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### EUR/USD: Consolidating After a Strong Recovery
The EUR/USD pair remained a focal point for traders as it navigated between significant support and resistance levels. After months of volatility, the euro found a foothold, bouncing off oversold conditions.
**Key Technical Outlook:**
– The euro staged a notable rebound from a support zone at 1.0500, testing resistance above 1.0700.
– The 50-day moving average acted as an interim ceiling around 1.0720, while the 200-day moving average below 1.0600 presented a longer-term floor.
– The RSI hovered near 50, signaling indecision and suggesting the pair could either break higher or face renewed selling.
**Fundamental Drivers:**
– The European Central Bank adopted a cautious tone, balancing inflation risks against weakening growth forecasts.
– U.S. Federal Reserve rhetoric suggested interest rates may have peaked, lending the euro slight upside momentum.
– Broader risk appetite, influenced by global events, continued to affect EUR/USD volatility.
**Trading Scenarios:**
– A sustained close above 1.0720 could allow the pair to challenge resistance at 1.0800 and 1.0900.
– Failure to hold above 1.0600 would expose the pair to renewed declines and a retest of 1.0500 or lower.
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### GBP/USD: Range-Bound Action
GBP/USD traded sideways after an earlier dip, as traders weighed mixed economic data from the UK and the US. The British pound steadied, attempting to build on recent gains but lacking strong momentum.
**Technical Summary:**
– Firm support emerged near 1.2100, while resistance was established at 1.2300.
– The currency pair remained squeezed between its 50-day and 200-day moving averages, both pointing to a lack of clear direction.
– Momentum indicators offered little guidance, remaining neutral amidst subdued price action.
**Key Influences:**
– The Bank of England maintained a wait-and-see approach on interest rates, prioritizing inflation containment without stifling fragile growth.
– US dollar strength fluctuated in response to evolving US inflation and employment data.
– Brexit-related uncertainties occasionally impacted sentiment but had less effect than previous years.
**Trading Approach:**
– Buying dips toward 1.2100 with tight stops was favored by short-term bulls.
– A breakout above 1
Read more on AUD/USD trading.