Forex Technical Major Pairs Analysis – December 26, 2025
Original analysis by F.X. Daily Report
The foreign exchange market continues to present various trading opportunities as the year approaches its conclusion. December 26, 2025, marks a critical point for traders to assess the momentum of major currency pairs and prepare strategies accordingly. This technical analysis review covers the state of major pairs and offers insights based on market behavior, technical indicators, and potential breakout or retracement zones.
Below is a detailed analysis of key major forex pairs: EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CAD, and USD/CHF.
EUR/USD: Euro Shows Signs of Temporary Consolidation
– The euro remains stable near 1.1000 following a modest bullish move in the days leading up to December 26.
– The pair extended gains above the 1.0950 resistance and approached the psychological 1.1000 barrier, suggesting bullish sentiment is intact.
– However, momentum indicators such as RSI and MACD show signs of potential consolidation as they hover near overbought levels.
– The price is trading above both the 50-period and 200-period moving averages, reinforcing an overall bullish perspective.
Technical Outlook:
– Key resistance levels: 1.1000 and 1.1050
– Support levels: 1.0950 and 1.0900
– If EUR/USD breaks and closes above 1.1000, a climb toward 1.1050 may occur.
– On a downside correction, 1.0900 acts as a mid-range support where buyer interest might emerge again.
– Traders should watch for any divergence in momentum that could signal the end of the current bullish phase.
Trade Considerations:
– An hourly or daily close above 1.1000 could encourage additional long positions.
– Bearish reversal candle patterns near 1.1050 may present a short-term selling opportunity for traders riding retracement strategies.
GBP/USD: Strong Bullish Move Signals Uptrend Resumption
– The British pound preserved its bullish momentum, trading above the 1.2700 zone, with recent price action suggesting increased buying interest.
– Positive UK economic data and weakening dollar sentiment support further pound strength.
– The pair crossed above key resistance at 1.2700 and is on track to test higher resistance levels around 1.2800 and 1.2900.
Technical Highlights:
– Key resistance levels: 1.2800 and 1.2900
– Support areas: 1.2650 and 1.2600
– The price remains above both the 50-day and 200-day simple moving averages which cushions the pair from sharp declines.
– RSI remains above 60, suggesting bullish momentum remains intact although a temporary pullback cannot be ruled out.
Trade Strategy:
– Traders may consider initiating long trades on minor pullbacks toward the 1.2700-1.2650 zone.
– A break below 1.2600 could force a retest of the recent lows around 1.2500.
– However, as long as the pound holds above the 200-day moving average, the uptrend scenario remains favorable.
USD/JPY: Correction Extends with Lower Highs Forming
– After peaking just shy of 144.00, the USD/JPY pair has started to show signs of weakness, forming lower highs over the past sessions.
– The price is now testing support near 142.00, with increasing bearish pressure visible in the momentum indicators.
– The Japanese yen benefits from weakening U.S. Treasury yields and cautious risk sentiment.
Key Technical Zones:
– Resistance levels: 143.00 and 144.00
– Support levels: 141.50 and 140.00
– The pair is stuck below the 50-period moving average and trending toward the 200-period line, signaling potential for further retracement.
– The downward sl
Explore this further here: USD/JPY trading.