Pairs in Focus: Forex Market Technical Analysis (by Christopher Lewis, originally published on DailyForex)
In the week spanning from November 1st to November 7th, 2025, the foreign exchange market showed several significant trends that drew the attention of traders. Christopher Lewis, a senior market analyst at DailyForex, provided detailed technical analysis that outlined opportunities and potential risks in notable currency pairs. This analysis aims to expand upon his original insights with a review of major Forex pair performances, updated technical patterns, and trader sentiment indicators, extending the commentary into a comprehensive 1000+ word breakdown of the week’s most actively watched FX pairs.
EUR/USD Technical Overview
The euro showed signs of stability in early November, as the EUR/USD pair attempted to recover from recent lows. Christopher Lewis noted that the pair had found support near the 1.0600 level and faced key resistance at 1.0700. The price action during the week indicated a consolidative phase marked by uncertainty over the European Central Bank’s policy direction and mixed economic data from the Eurozone.
Key Observations:
– Support Zone: 1.0600 remains a crucial support level, with repeated tests during intraday sessions
– Resistance: The 1.0700 level had proven difficult to breach due to dollar strength
– Trend Direction: Sideways to slightly bullish bias due to potential ECB hawkish turn in Q1 2026
– RSI Indicator: Trading near the neutral 50 level, indicating indecision in momentum
– Moving Averages: The 50-day EMA was acting as dynamic resistance, while the 200-day EMA held above as a longer-term resistance marker
Fundamentals influencing EUR/USD included US macroeconomic data that continued to outperform expectations, particularly in the labor market and durable goods orders. However, dovish commentary from Federal Reserve officials toward the end of the week limited USD gains, allowing the euro to regain some ground.
Trading Strategy Outlook:
– Bullish traders should look for a break and close above 1.0700 before entering longer-term positions
– Bearish traders may wait for a retest and failure near 1.0680 to initiate short positions with tight stops
GBP/USD Technical Analysis
The British pound entered the week facing renewed pressure amid political uncertainty and lackluster economic readings from the UK. As highlighted by Lewis, the GBP/USD pair showed weakness below the 1.2200 level but remained range-bound within well-defined price levels.
Technical Highlights:
– Resistance: 1.2275 – A strong resistance level tested multiple times
– Support: 1.2100 – Psychologically significant and aligned with previous weekly swing lows
– Momentum: Weak bullish momentum persisted as of mid-week but lacked follow-through
– MACD Indicator: Histogram printed flat lines, indicating a stalling trend
– Fibonacci Retracement: The 38.2% level of the September-October drop aligned near 1.2240
The Bank of England’s dovish tone during its latest policy statement weighed on the pound despite inflation numbers showing signs of persistence. The British economy’s continued stagnation has led to speculation that the BoE could cut rates earlier than previously expected in 2026.
Trading Suggestions:
– A close below 1.2100 could signify a reopening of the downtrend with targets near 1.2000
– A breakout above 1.2275 would challenge descending trendline resistance from highs posted in mid-October
USD/JPY Price Behavior
The USD/JPY remained a focal point for traders as the dollar tested the upper bounds near the psychological 150.00 level. As per Lewis’ analysis, the pair’s behavior during the week reflected potential intervention fears from Japanese authorities, mirroring previous market responses from the Bank of Japan.
Key Technical Levels:
– Resistance: 150.00 – Marked the high for the week and where price consolidation occurred
– Interim Support: 149.00 – Level where buyers
Explore this further here: USD/JPY trading.