**Forex Technical Outlook: Currency Pairs in Focus from December 7th to 12th, 2025**
*Based on original article by DailyForex*
The forex market continues to react to shifting macroeconomic fundamentals and geopolitical dynamics as traders enter the final month of 2025. Volatility has returned to several major pairs, driven by mixed economic indicators, anticipated central bank decisions (particularly from the Federal Reserve and European Central Bank), and ongoing inflation concerns around the globe. This week’s session, spanning from December 7th to 12th, features key technical levels and trend-defining patterns across multiple currency pairs. Below is a detailed technical analysis outlook for some of the most important forex pairs to watch.
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## EUR/USD – Consolidation Below Resistance
The EUR/USD pair continues to trade in a broad consolidation zone, with price action largely contained between key resistance at 1.1025 and support around 1.0820.
– **Support Levels**:
– 1.0820: Recent consolidation support
– 1.0765: Key psychological and technical support that has held up multiple times
– 1.0690: Early November swing low
– **Resistance Levels**:
– 1.0965: Minor short-term resistance
– 1.1025: Major resistance zone, aligning with the 200-day moving average
– **Technical Indicators**:
– RSI continues to hover near the 50-zone, indicating market indecision
– MACD histogram is flattening, indicating reduced momentum on both sides
– Price action is respecting a horizontal trend, suggesting a neutral bias
– **Outlook**:
– A sustained break above 1.1025 would open the door for a rally toward 1.1140/50
– Conversely, a failure to hold above 1.0820 could risk a bearish reversal with targets at 1.0750 or lower
– **Fundamental Drivers to Watch**:
– European Central Bank commentary, especially regarding its inflation forecasts
– Continued divergence between US and Eurozone interest rates
– US NFP (Non-Farm Payrolls) data and CPI numbers due later in the week
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## GBP/USD – Bullish Bias with Caution Ahead of Key Resistance
The British pound has shown resilience, gaining modest strength against the US dollar. Technically, GBP/USD remains in a rising channel since early November 2025, with buyers eyeing a break above the 1.2800 handle.
– **Support Levels**:
– 1.2575: Near-term support, previously acted as resistance
– 1.2460: 50-day moving average support
– 1.2370: Swing low from late October
– **Resistance Levels**:
– 1.2750: Immediate resistance near the November high
– 1.2825: Multi-month resistance dating back to July 2023
– 1.2940: Strong psychological level
– **Technical Indicators**:
– RSI above 60, indicating strong bullish momentum
– Bullish crossover observed in the MACD
– Price remains above the 50-day and 200-day moving averages
– **Outlook**:
– As long as support above 1.2575 holds, a move toward 1.2825 appears viable
– Bearish pressure may re-emerge if 1.2460 gives way, potentially dragging the pair toward 1.2300
– **Key Fundamentals**:
– BoE interest rate guidance for Q1 2026
– UK inflation reports mid-December
– Political developments ahead of the new fiscal policy statement
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## USD/JPY – Correction Takes Hold After Recent Rally
USD/JPY reversed from a 7-month high near 152.00, dropping sharply as
Read more on USD/CAD trading.