Pairs in Focus: Weekly Technical Analysis for October 19–23, 2025
Original insights by Christopher Lewis, DailyForex.com
The week of October 19 to October 23, 2025, offered a dynamic setup across several major forex pairs. As the global economic landscape continues to shift—driven by evolving central bank policies, inflationary pressures, and geopolitical events—technical analysis remains essential in navigating currency markets. This article dissects the key currency pairs of the week, highlighting potential support and resistance zones, technical chart patterns, and strategic trading opportunities.
EUR/USD: Consolidation Ahead of Potential Break
The EUR/USD pair ended the previous week near the 1.0600 level, reflecting consolidation after recent volatility. While the euro remains under pressure due to weak Eurozone economic indicators and persistent inflation concerns, the pair is also impacted by U.S. Treasury yields and Federal Reserve guidance.
Key Technical Observations:
– Price Strategy: EUR/USD has been trapped in a tight range between the 1.0500 and 1.0700 zones, forming a possible symmetrical triangle on the daily chart.
– Resistance Levels:
– Initial resistance at 1.0650
– Major resistance at 1.0700, where previous highs and the 50-day EMA converge
– Support Levels:
– First support at 1.0550
– More significant support at 1.0500, which marks a multi-week floor
– Indicators:
– The RSI sits near the 50 mark, suggesting a lack of momentum in either direction.
– MACD remains flat, confirming the consolidation phase.
Analytical Summary: EUR/USD lacks strong directional momentum. Short-term traders might consider fading rallies near resistance and buying dips near support until a clearer breakout occurs.
GBP/USD: Bullish Breakout in Progress?
GBP/USD has shown signs of strength recently, bouncing back from the 1.2150 support level. Despite ongoing concerns over the UK’s inflation combat strategy, the pound has gained ground as expectations for higher interest rates continue to support the currency.
Technical Highlights:
– Price Movement: The pair pushed higher after forming a double-bottom near 1.2100 last week.
– Resistance Targets:
– 1.2300 psychological level remains the initial hurdle.
– Next key resistance sits at 1.2450, a level aligned with the 200-day moving average.
– Support Levels:
– 1.2150 has become a solid support base on the four-hour and daily charts.
– Secondary support level stands at 1.2080.
– Indicators:
– RSI trending upward but not yet overbought.
– Bullish divergence on the MACD suggesting positive momentum.
Trading Strategy: Bulls may look for a break above 1.2300 for a push toward 1.2450. Until then, dips toward 1.2150 could offer favorable long opportunities.
USD/JPY: Overextended but Bullish
The USD/JPY pair continued its bullish trajectory, testing levels above 150.00 amid divergence in monetary policy between the Federal Reserve and the Bank of Japan. Japanese authorities have voiced concern about the yen’s weakness, raising the possibility of intervention.
Key Technical Insights:
– Price Behavior: USD/JPY broke past the psychological 150.00 threshold, marking a fresh high not seen since 2022.
– Resistance Levels:
– Immediate resistance at 150.50
– Long-term resistance near 152.00, a level historically watched for intervention
– Support Zones:
– 149.00 is the closest support, backed by recent consolidation
– Further support at 147.50, near the 50-day EMA
– Indicators:
– RSI is in overbought territory, suggesting caution for buyers at these levels.
– MACD remains bullish but is showing early signs of weakening momentum.
Potential Setups: While the uptrend remains
Explore this further here: USD/JPY trading.