**Forex Market Analysis: Key Currency Pairs in Focus (October 12–17, 2025)**
*Adapted and expanded from the original article by Rex Takasugi, DailyForex.com*
As trading resumes for the second half of October 2025, traders across global financial markets are closely monitoring several major currency pairs that are showing signs of volatility and potential directional movement. The forex market has recently been influenced by a combination of factors, including diverging central bank policies, geopolitical tensions, and macroeconomic data. This article provides an in-depth technical analysis of key currency pairs to watch during the week of October 12–17, 2025. These include EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, USD/CAD, and NZD/USD.
All analysis is based on technical chart patterns and market sentiment, and supplemented with relevant macroeconomic developments that might influence forex performance. The goal is to assist traders in identifying profitable entry and exit points for their strategies, whether short-term, swing trading, or long-term positioning.
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## 1. EUR/USD: Euro Struggles at Resistance Levels
Despite recent resilience above the 1.0600 level, EUR/USD remains in a downtrend, with technical indicators suggesting limited upward momentum.
– **Trend Analysis**: The pair has been in a bearish trend since July 2025, mainly due to the European Central Bank (ECB) signaling a dovish stance amid slowing economic growth in the Eurozone.
– **Resistance Levels**: The pair continues to face strong resistance around 1.0640, 1.0690, and 1.0750. Previous attempts to surge past these points have failed.
– **Support Levels**:
– 1.0570: Previous swing low that may act as near-term support.
– 1.0530: Fib retracement level from the 2023–2024 upward leg.
– 1.0480: Multi-month low that could be tested if the downtrend extends.
– **Indicators**:
– RSI close to 50, showing indecision.
– MACD remains slightly below zero, hinting that bears may still dominate.
**Fundamental Outlook**:
– The ECB has left rates unchanged for three consecutive meetings and expressed concerns over deflationary pressures.
– US data continues to outperform its European counterparts, giving the dollar an edge.
**Trade Strategy**:
– Short-term traders might look for selling opportunities near resistance zones with stops above 1.0750.
– A clean break below 1.0530 could confirm bearish continuation, targeting 1.0480 and below.
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## 2. GBP/USD: British Pound Faces Pressure, UK Economy Slows
Cable has struggled to recover above 1.2300, as growth weakness and lack of hawkish guidance from the Bank of England weigh on the pound.
– **Short-Term Trend**: Consolidating in a tight range, with a slight bearish bias.
– **Resistance Levels**: Key resistance stands at 1.2300, followed by 1.2370 and 1.2425.
– **Support Levels**:
– 1.2140: A psychological and technical support area.
– 1.2085: Weekly support; break below may suggest a longer-term downtrend.
– **Technical Indicators**:
– RSI near 48, suggesting neutral momentum.
– Declining volume on up days adds to the bearish outlook.
**Macro Drivers**:
– The UK’s recent PMI numbers showed contraction in both manufacturing and services.
– BoE policymakers appear divided on future rate hikes, which contributes to uncertainty in GBP demand.
**Trade Strategy**:
– Bearish positions favored below 1.2140, targeting 1.2085 or even 1.2000.
– Bullish momentum possible only if price breaks and sustains above 1.
Read more on USD/CAD trading.