**Forex Technical Analysis: Major Pairs Update for October 31, 2025**
*Adapted and expanded from an article by FXDailyReport, with additional insights from industry sources.*
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As the month draws to a close, forex traders and financial analysts carefully evaluate the movements of major currency pairs. The stability of the US dollar, ongoing economic events, and central bank policy decisions remain crucial in guiding price action. This article provides an in-depth technical overview of some of the world’s most actively traded currency pairs, incorporating insights from FXDailyReport and supplementary analysis from other professional sources.
## EUR/USD: Steady Recovery Within Downtrend
**Current Overview**
– Recently, EUR/USD has demonstrated a moderate recovery, attempting to secure gains after a long period of bearish activity.
– Bullish sentiment has started to form following a retreat from multi-year lows, largely driven by market speculation about potential changes in the Federal Reserve’s interest rate path.
– ECB monetary policy remains cautious, adding some uncertainty to the euro’s short-to-medium-term direction.
**Key Levels**
– **Resistance:** The pair faces immediate resistance at the 1.0720 region, near the 50-day Exponential Moving Average (EMA).
– **Support:** Strong support is evident around the 1.0500 area, near the lows established in early October.
– **Long-term resistance:** The price needs to breach the 1.1000 psychological level to suggest a significant trend reversal.
**Technical Indicators**
– Moving averages generally indicate ongoing bearish pressure on higher timeframes.
– Relative Strength Index (RSI) readings are neutral to slightly oversold, hinting at the potential for a short-term bounce.
– The MACD is flattening, suggesting that momentum in the downtrend may be fading.
**Outlook**
– As long as EUR/USD remains below the 1.0720/1.0750 zone, sellers are likely to maintain control.
– Upside movement could accelerate if the pair breaks above the 1.0800 threshold, targeting 1.1000.
– Downside risks increase on a close below 1.0500, potentially opening the way to test further lows at 1.0350.
## GBP/USD: Attempting a Rebound Amid Divergent Fundamentals
**Current Overview**
– The British pound has shown resilience against the US dollar, seeking to extend gains off recent lows near 1.2100.
– The Bank of England’s cautious approach to monetary policy has added to volatility, as statements regarding inflation and economic stability weigh on sentiment.
**Key Levels**
– **Resistance:** An important resistance line comes in at 1.2300, aligning with both moving averages and previous consolidation areas.
– **Support:** Initial support stands near 1.2100, followed by stronger protection around 1.2000.
**Technical Indicators**
– The pair remains in a short-term consolidation phase according to Bollinger Bands.
– MACD shows a minor bullish
Read more on AUD/USD trading.