**Forex Pairs in Focus: Technical Outlook from October 12 to 17, 2025**
*Adapted and expanded from original analysis by DailyForex*
As we move deeper into October 2025, global markets remain volatile amid ongoing economic uncertainties. Forex traders are watching closely as major currency pairs display signs of trend continuation or potential reversals. Key focus areas this upcoming week include pivotal levels on the EUR/USD, USD/JPY, GBP/USD, and commodity-linked currencies such as AUD/USD and USD/CAD. Investors are keeping tabs on inflation figures, central bank policy signals, and geopolitical developments that can significantly influence foreign exchange markets.
Below is a comprehensive breakdown of technically significant currency pairs for the period of October 12 to 17, 2025. This analysis combines technical chart patterns with macro inputs to deliver a clearer trading outlook.
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### EUR/USD: Trader Sentiment Turns Bearish Despite Central Bank Silence
The EUR/USD pair has entered a bearish phase, driven by renewed US dollar strength and eurozone economic comparisons. The European Central Bank remains cautious, offering little forward guidance, while the US dollar benefits from strong inflation expectations and robust economic growth data.
**Key Technical Highlights:**
– Price closed below the key support zone at 1.0600, suggesting downside momentum is in play.
– The 50-day SMA crossed below the 200-day SMA in late September, confirming a death cross pattern, which historically signals bearish continuation.
– RSI is residing below 40, suggesting weak bullish conviction and room for further downside.
– Support zone at 1.0480, where price previously found a base in early March 2025.
– Resistance is located near 1.0650, a previous swing high and the upper bound of a descending trendline.
**Fundamentals to Watch:**
– Differential in bond yields: The 10-year US Treasury continues to rise above 4.5% while the eurozone counterparts lag behind.
– US CPI and PPI numbers coming out mid-week could provide further fuel for dollar bulls if inflation shows persistence.
– Eurozone growth expectations remain muted, with Germany possibly entering a technical recession by Q4 2025.
**Trading Strategy:**
– Short trades favored on rallies toward resistance zones.
– Break below 1.0500 could accelerate declines toward 1.0350.
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### GBP/USD: Tight Ranges Before Potential Breakout
The British pound has managed to stay relatively rangebound against the dollar, but the underlying sentiment tilts bearish due to weak UK economic indicators. Bank of England policy remains indecisive, prompting uncertainty among traders.
**Technical Landscape:**
– GBP/USD is trading near 1.2150 after repeatedly failing to break through the resistance at 1.2300.
– Price remains below both the 50-day and 200-day SMAs, confirming bearish bias on the daily timeframe.
– Support comes in at 1.2050, while resistance lies at 1.2300.
– MACD histogram shows waning bullish momentum, and RSI oscillates in neutral zones.
**Macro Factors:**
– UK GDP for August saw a modest decline of 0.2%, indicating the economy is stalling.
– Labor market remains tight, but wage growth is slowing, undermining BOE’s hawkish tone.
– Political uncertainty tied to proposed tax adjustments could drive further sterling volatility.
**Trading Approach:**
– Short-term traders may sell into strength near 1.2250.
– Break below 1.2050 could open the path toward 1.1900 support area.
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### USD/JPY: Dollar Strength Stretches to 149 as Intervention Fears Linger
The USD/JPY is once again testing elevated levels as the yen continues depreciating, reaching the 149.00 threshold. Japanese authorities have issued verbal warnings, raising the threat of direct FX intervention similar to 2022-style actions.
**Technical Overview:**
Read more on USD/CAD trading.