**Forex Market Technical Analysis: Key Pairs to Watch (14th – 19th December 2025)**
*Based on analysis by DailyForex, expanded and rewritten here for clarity and depth.*
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## Overview
The week of December 14th to 19th, 2025, presents a host of technical and fundamental influences across major and minor forex pairs. Currency markets are responding to changing central bank policies, macroeconomic releases, and shifts in risk sentiment across global equities and commodities.
We break down the most critical opportunities and scenarios for the major pairs—EUR/USD, GBP/USD, USD/JPY, AUD/USD—along with noteworthy minor pairs and cross-currency developments. Key support and resistance levels, technical formations, and macro drivers are considered, integrating perspectives from both the original DailyForex analysis (authored by Forex expert Adam Lemon) and supplementary market research.
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## EUR/USD Analysis
The EUR/USD, as the world’s most traded currency pair, continues to react to contrasts between Federal Reserve and European Central Bank policy expectations and inflation trends.
**Short-Term Technical Outlook:**
– After testing three-month highs in early December, euro bulls face resistance near the 1.1100 handle, marking a significant psychological and technical barrier.
– Momentum indicators (RSI, MACD) suggest mild overbought conditions on the daily chart, but no immediate signs of a top.
– The pair remains above both the 50-day and 200-day Exponential Moving Averages, suggesting the prevailing trend is bullish.
– Immediate support lies at 1.0960 (mid-November retracement), with further backup at 1.0850, where the 200-day EMA intersects.
– A break below 1.0850 could trigger a shift to bearish momentum, targeting 1.0750 and possibly 1.0650.
**Fundamental Influences:**
– The ECB’s dovish outlook contrasts with still-hawkish tones from the Fed, though signs of US inflation easing have limited dollar demand.
– Watch for Eurozone CPI releases and any updates on ECB rate guidance.
– If US economic data continues to underperform, the euro’s upward bias may persist.
– Eurozone political uncertainties or weaker European data could rapidly shift sentiment back to favor the dollar.
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## GBP/USD Analysis
The British pound enters the week supported by economic data and changing expectations for Bank of England monetary policy, but faces looming political uncertainties.
**Technical Dynamics:**
– GBP/USD has established a bullish channel from late October, with key higher lows supporting the trend.
– Key resistance emerges at 1.2920, a long-term pivot and psychological mark.
– Support is very firm at 1.2640, with an intermediate level at 1.2780.
– The moving averages (20, 50, and 200-day) all slope upwards, confirming the underlying bullish structure.
– A daily close below 1.2640 would suggest a
Read more on AUD/USD trading.