**Forex Technical Analysis: Major Currency Pairs Overview – December 17, 2025**
*Adapted and expanded from the original article by Azeez Mustapha, FXDailyReport.com*
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Forex traders continue to monitor major currency pairs for potential market setups as we move through December 2025. Various factors, including central bank policies, inflation reports, and macroeconomic events, are shaping the current landscape. Technical analysis remains a vital tool as market participants look to identify support and resistance levels, candlestick patterns, and moving average crossovers for actionable signals. In this comprehensive overview, we analyze the major currency pairs: EUR/USD, GBP/USD, USD/JPY, AUD/USD, and USD/CAD, with insights from FXDailyReport’s December 17, 2025, update, along with supplementary data from recent financial news.
## EUR/USD: Uptrend Faces Key Resistance
The EUR/USD pair has shown notable resilience as it extends its recovery, rising from November lows amid shifting expectations around ECB monetary policy and the US Federal Reserve’s stance. By December 17, the pair approached the 1.0900 area, prompting traders to evaluate the sustainability of the trend.
**Technical highlights:**
– **Support levels:** 1.0800, 1.0750, 1.0700
– **Resistance levels:** 1.0930, 1.0980, 1.1040
– **SMA signals:** The pair is trading above the 50-day and 200-day simple moving averages, suggesting positive momentum.
– **RSI (Relative Strength Index):** Hovering near 60, reflecting neutral to slightly bullish momentum.
**Key points to note:**
– The December recovery has been supported by encouraging Eurozone inflation data, which may offer the European Central Bank room to maintain interest rates.
– US inflation and labor data softened expectations for further Fed hikes, narrowing policy divergence.
– Technically, a breakout above 1.0930 resistance could pave the way for further gains toward 1.1000.
– Failure to hold above 1.0800 would expose the pair to a possible retest of November’s lows near 1.0700.
**Trading strategies:**
– **Bullish scenario:** Break and retest above 1.0930 invites long entries with stops below 1.0880, targeting 1.1040.
– **Bearish scenario:** Rejection near resistance or decisive move below 1.0800 opens room for short trades, targeting 1.0700.
## GBP/USD: Sterling Holds Ground as UK Data Remains Mixed
The British pound has managed to hold above post-Brexit lows against the dollar, fluctuating within a narrow range as mixed economic data tempers optimism. The Bank of England left rates unchanged in December, with policymakers divided on the timing of future cuts.
**Technical highlights:**
– **Support levels:** 1.260
Read more on AUD/USD trading.