**Forex Market Weekly Analysis: Key Currency Pairs from October 12 to 17, 2025**
*Adapted and expanded based on the original article by DailyForex*
The Forex market continues its dynamic behavior as we move through October 2025. Traders are closely watching shifts in macroeconomic data, interest rate expectations, and geopolitical developments. From the sustained strength of the US dollar to the volatility seen in the Japanese yen and Euro, the week of October 12–17 offers several pivotal technical levels and economic events that could drive price action in the most traded currency pairs.
This weekly analysis explores the key price levels, trends, and potential scenarios for major currency pairs, including EUR/USD, GBP/USD, USD/JPY, USD/CAD, AUD/USD, and Gold (XAU/USD). The insights are based on a blend of technical indicators and fundamental context, allowing traders to plan entries and exits with greater precision.
Let’s look at the major Forex pairs for the week and uncover the technical outlook.
—
### EUR/USD – Consolidation Around 1.0600 Amid Dovish ECB Tone
The Euro continues to trade under pressure around the 1.0600 psychological level. Its inability to rebound significantly reflects the growing divergence in economic performance and interest rate trajectory between the US and Eurozone.
– **Resistance Levels**:
– 1.0650: A short-term resistance level capped last week’s upside attempts. A move above this could open up toward 1.0720.
– 1.0720: A stronger resistance that aligns with the 50-day moving average.
– **Support Levels**:
– 1.0550: Strong near-term support which, if broken, could trigger a move toward 1.0500.
– 1.0500: Psychological support and the recent intraday low.
– **Technical Indicators**:
– RSI hovers around neutral (50), not showing strong bullish or bearish divergence.
– Price remains below both the 50- and 200-day moving averages, confirming a bearish bias.
– **Fundamentals to Watch**:
– The European Central Bank has projected more weak growth ahead, which has increasingly weighed on the euro.
– US data, such as inflation and retail sales this week, will impact the dollar leg of the pair.
The bias remains bearish unless we see a daily close above 1.0720.
—
### GBP/USD – Range-Bound Between 1.2100 and 1.2250
The British pound continues to lack a clear trend, trading between 1.2100 and 1.2250. A lack of strong data from the UK and dovish tones from the Bank of England have kept rallies capped.
– **Resistance Levels**:
– 1.2250: The top of the recent range.
– 1.2295–1.2300: Resistance zone near the 50-day EMA.
– **Support Levels**:
– 1.2100: Key short-term support.
– Below this, 1.2030 would be the next downside target.
– **Technical Indicators**:
– MACD histogram shows weak momentum, favoring sideways to lower action.
– A descending trendline from August highs continues to pressure the pair.
– **Fundamental Triggers**:
– No major policy shifts expected from the Bank of England this week, but UK CPI data due may stir volatility.
– GDP growth remains tepid in the UK, which could keep GBP under pressure against the USD.
Any close below 1.2100 would likely confirm a return to the downside trend. Above 1.2250, the next level would be 1.23.
—
### USD/JPY – Bullish Momentum Continues Toward 150.00
The Japanese yen continues to weaken, with USD/JPY inching closer to the psychologically crucial 150
Read more on USD/CAD trading.