This article is a rewritten and expanded version of the original piece titled “Pairs in Focus: 07th to 07th November 2025” by Robert Petrucci, published on DailyForex.com. The focus is on analyzing key forex currency pairs, examining technical indicators, and identifying potential trading opportunities based on current market sentiment, economic events, and price behavior. Additional insights have been incorporated from other reputable trading sources and forex analysts to create a comprehensive overview, extending the coverage to at least 1000 words.
Overview of Forex Market Sentiment – Early November 2025
The forex market is in a flux of mixed sentiment entering the first week of November 2025. Traders are navigating uncertainties fueled by central bank decisions, inflation data releases, and ongoing geopolitical developments. Global risk appetite remains uncertain, especially after the recent statements from the Federal Reserve and the European Central Bank (ECB), which gave no clear direction on future rate adjustments.
Key Factors Shaping Forex Market Movement:
– Dovish tone from central banks, including the Federal Reserve and ECB
– Slowing inflation in major economies such as the U.S. and Eurozone
– Rising probability of a rate pause or even a cut in early 2026
– Stronger-than-expected corporate earnings driving equities
– Influential commodities like oil and gold reacting to global economic data
– Continued strength in the U.S. economy versus weaker performance in the Eurozone and UK
Major Currency Pairs in Focus
1. EUR/USD – Testing Key Support Levels
The EUR/USD pair has shown signs of weakness entering November, with bearish momentum persisting even after the recent ECB policy decision. The pair failed to hold ground near the 1.0700 level and now faces another test of key support zones.
Technical Highlights:
– Support level: 1.0580
– Resistance level: 1.0725
– 50-day Moving Average: Trading below the 50-day MA, confirming bearish sentiment
– RSI: The Relative Strength Index is in neutral territory, avoiding oversold zones
Additional Commentary:
According to analysts at ING and Bloomberg FX, the euros’ longer-term outlook hinges on whether the ECB signals tightening or easing in mid-2026. Current inflation data for the Eurozone has tilted towards the downside, putting pressure on EUR.
Short-Term Forecast:
If the pair fails to sustain above 1.0600, a retest of the 1.0520 level is probable. A move above 1.0725 would invalidate short-term bearish bias, potentially triggering a rally toward 1.0820.
2. GBP/USD – Volatility Persists Amid Economic Uncertainty
The British pound faced significant downtrend pressure in October, which spilled into early November. Weak GDP data and political uncertainty in the UK continue to weigh on overall sentiment for GBP.
Technical Highlights:
– Support level: 1.2100
– Resistance level: 1.2250
– Cable is trading sideways within a descending wedge pattern
– 200-day MA remains above current pricing, indicating bearish trend over the medium term
Economic Overview:
– UK GDP contracted slightly in Q3 2025, shrinking by 0.2 percent
– Inflation has slowed to 3.6 percent YoY but remains above the BoE’s target
– The Bank of England is expected to hold rates steady for the rest of Q4 2025
According to CMC Markets, the pound may remain under pressure unless the Bank of England offers hawkish forward guidance during its next rate meeting.
Short-Term Forecast:
A break below 1.2100 would open downside movement to 1.2000. Alternatively, sustained movement above 1.2250 may strengthen bullish momentum, especially if the dollar weakens on soft U.S. jobs data.
3. USD/JPY – Dollar vs Yen Reaches Overbought Levels
The USD/JPY pair has continued to trend higher, approaching multi-de
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