This is a rewritten and expanded version of the original article “Pairs in Focus: 19th to 23rd October 2025” by DailyForex.
Forex Technical Outlook: Key Currency Pairs for October 19–23, 2025
Original Author: DailyForex.com
The Forex market is currently navigating a dynamic phase as traders weigh various macroeconomic factors, central bank policies, and technical developments. During the week of October 19 to 23, 2025, several currency pairs have shown promising technical setups that warrant close observation.
The global economic landscape continues to influence market sentiment. With diverging monetary policy paths among major central banks, currency volatility remains a key driver of market opportunities. Below is a comprehensive look at the major Forex pairs traders should pay attention to throughout the rest of the trading week, grounded in technical analysis.
EUR/USD: Struggles Against Resistance, Eyes Lower Support Levels
The EUR/USD pair continues to hover near its recent lows, failing to break above critical technical resistance levels. As the US dollar gains strength from stronger-than-expected economic data and rising Treasury yields, the euro faces added pressure.
Key technical highlights:
– Price remains below the 200-day SMA, signaling an overall bearish bias.
– Resistance is holding firm near 1.0600, a level tested multiple times without success.
– Support sits at 1.0450, a steady base that bulls have defended in recent sessions.
– RSI remains neutral but leans slightly bearish, limiting immediate upside potential.
Outlook:
The EUR/USD pair might continue trading within a narrow range unless it breaks firmly through resistance at 1.0600 or sinks below 1.0450. The dollar’s momentum, particularly from hawkish Fed comments, might keep the pair under pressure. Traders are advised to watch economic data releases from both Europe and the United States for directional clues.
GBP/USD: Cautiously Bearish as Pound Lacks Momentum
The British pound has shown weak demand against the US dollar, with the GBP/USD pair creating lower highs over the past two weeks. While the Bank of England remains cautious, the Federal Reserve’s more aggressive tightening stance has widened rate differentials in favor of the dollar.
Technical observations:
– GBP/USD is trading well below its 50- and 100-day moving averages.
– A descending channel is forming, indicating a continuation of the bearish trend.
– Key support is found at 1.2100, while short-term resistance is located at 1.2300.
– MACD is bearish and declining, confirming downward momentum.
Outlook:
With no clear bullish catalysts for the pound in the short term, the path of least resistance remains lower. Potential downside targets lie near 1.2000 if the 1.2100 support breaks. Economic uncertainties around the UK economy and budget policies may compound the negative trend. The pair may experience minor relief rallies, but these are expected to be short-lived unless buoyed by surprising macroeconomic news.
USD/JPY: Continued Bullish Momentum Amid Yield Gap Expansion
USD/JPY has been one of the standout performers this year, continuously rising on the back of higher US yields and the Bank of Japan’s ongoing accommodative stance. As long as the BoJ refrains from tightening policy meaningfully, the yen seems unlikely to gain ground against the dollar.
Technical breakdown:
– The pair trades comfortably above all major moving averages, highlighting sustained bullish strength.
– A robust uptrend channel has been developing since August, with higher highs and higher lows.
– Immediate resistance is seen at 150.00, a psychologically important level.
– Support appears around 148.20, where the price previously consolidated before its latest surge.
Outlook:
The bullish momentum remains intact. Intervention warnings by Japanese officials may cause intermittent pullbacks, but the broader trend favors the dollar. Traders should watch for any comments from BoJ members or unexpected shifts in US inflation statistics that might prompt volatility. A break above
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