Title: Forex Pairs in Focus: Technical Outlook from November 1–7, 2025
Original Author: Alejandro Zambrano, Chief Market Strategist, ATFX
Source: DailyForex.com
URL: https://www.dailyforex.com/forex-technical-analysis/2025/11/pairs-in-focus-07th-to-07th-november-2025/236361
Overview
As markets shift focus to the final quarter of 2025, the forex landscape remains volatile, driven by a combination of macroeconomic releases, central bank decisions, and geopolitical developments. The current week—spanning November 1 to 7—presents key technical setups in several major forex pairs including EUR/USD, GBP/USD, and USD/JPY. Traders are also closely watching USD/CAD amid oil market fluctuations and evolving Federal Reserve narratives.
This article analyzes the technical outlook for major forex pairs for the first week of November 2025 based on the insights from Alejandro Zambrano, supplemented with additional technical studies and economic context.
EUR/USD: Bearish Bias Persists, Support Zones In Focus
The EUR/USD pair has been weakening gradually in recent sessions, trading within a defined downtrend. The euro has struggled despite some brief relief rallies, largely due to continued divergence between the European Central Bank’s cautious tone and the U.S. Federal Reserve’s still-hawkish guidance.
Key observations:
– The EUR/USD pair traded around 1.0610 at the start of the week.
– On the daily chart, the pair remains in a descending channel with declining relative strength index (RSI), suggesting sustained bearish momentum.
– Key resistance is seen near the 50-day simple moving average (SMA) around 1.0680. A break above this could invite minor corrections toward 1.0760.
– However, failure to break above upper trend-line resistance points to an extended move toward support near 1.0500 and even 1.0450.
European economic data continues to reflect weak manufacturing and service PMIs, keeping investors cautious about allocating capital to the eurozone. Meanwhile, the Fed’s commitment to managing inflation expectations keeps the dollar in demand.
Near-term outlook:
– Bearish trend intact unless EUR/USD breaks decisively above 1.0700.
– Downside targets: 1.0500 and 1.0450.
– Upside limited to near-term resistance zones between 1.0680 and 1.0760.
GBP/USD: Sterling Facing Headwinds Below Key Levels
GBP/USD trades under pressure as the Bank of England takes a more dovish stance compared to the Federal Reserve. A broad dollar strength and investor wariness surrounding the UK’s economic outlook are adding to sterling’s weakness.
Important technical levels:
– Fibonacci retracement from September lows to October highs places strategic resistance around 1.2210–1.2250.
– Price action faced rejection near this resistance band, falling toward 1.2100 level mid-week.
– Support is building in the 1.2030–1.2070 region, but unless bulls regain 1.2250, the risk of a deeper correction remains.
Factors influencing GBP/USD:
– Recent Bank of England commentary has leaned dovish, citing weak wage growth and GDP stagnation.
– U.S. Treasury yields remain elevated, making the dollar more attractive in comparison.
– Political instability and sluggish consumer spending in the UK add pressure on the pound.
Projected forecast:
– If support at 1.2030 holds, a short-term bounce toward 1.2200–1.2250 could occur.
– However, the structure remains bearish with downside likely extending toward 1.1950 or lower if 1.2030 breaks.
USD/JPY: Surging Toward Intervention Territory
The yen continues
Read more on USD/CAD trading.