Top forex pairs to buy now: high probability trade setups

As of mid-February 2025, the forex market is influenced by several key factors, including U.S. trade policies, inflation data, and geopolitical developments. These elements contribute to potential high-probability trade setups in various currency pairs.

EUR/USD

The euro has been consolidating between 1.0300 and 1.0320. A rise towards the resistance level of 1.0384 may present selling opportunities, targeting 1.0253 or even 1.0131. Conversely, a consolidation above 1.0400 could indicate bullish momentum towards 1.0498 and 1.0620.

USD/JPY

The U.S. dollar is trading near a one-week high against the Japanese yen, influenced by stronger-than-expected U.S. consumer price data. This suggests the Federal Reserve may maintain higher interest rates longer, potentially supporting further USD appreciation against the JPY.

GBP/USD

Historically, February has been a bearish month for GBP/USD, with average returns of around -0.33% since 1971. Currently, support is observed in the 1.2250-1.2300 area; a breach below this range could lead to further declines.

AUD/USD

The Australian dollar has experienced modest bearish trends in February, averaging a loss of -0.19%. Support near multi-year lows around 0.6170 is critical; a break below this level may open the path to further downside.

USD/CAD

February has historically been slightly bullish for USD/CAD, with an average return of +0.17%. However, ongoing trade tensions between the U.S. and Canada could significantly impact this pair, potentially overshadowing historical seasonal trends.

It's essential to consider that current market conditions, such as trade policies and geopolitical events, may override historical patterns. Traders should conduct thorough analysis and stay informed about ongoing developments before making trading decisions.

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