Weekly Forex Forecast for DXY, EURUSD, GBPUSD, and XAUUSD (December 8 – 12, 2025)
*Based on analysis by Justin Bennett, Daily Price Action*
Understanding the market direction at the start of the trading week is fundamental for Forex traders who trade the majors and gold. This forecast draws on technical analysis for the U.S. Dollar Index (DXY), EURUSD, GBPUSD, and XAUUSD for the week of December 8 to 12, 2025. The following article is built upon key observations and insights from Justin Bennett’s original article at Daily Price Action.
Table of Contents
– DXY (US Dollar Index) Outlook
– EURUSD Forecast
– GBPUSD Analysis
– XAUUSD (Gold) Technical Setup
– Key Events to Watch
– Conclusion
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## DXY (US Dollar Index) Outlook
The US Dollar Index remains a central barometer of risk sentiment and is commonly referenced in relation to EURUSD and GBPUSD direction. Last week’s price action saw the DXY react to significant support and resistance zones, setting the tone for the coming week.
### Technical Overview
– The DXY carved out a higher low near the 104.20 support region.
– Near-term resistance exists around 105.10, which coincides with the descending trend line from Q4 2025 highs.
– The index traded within a broader consolidation channel, signaling indecision amongst bulls and bears.
– Price also maintained itself above the 200-day moving average, hinting at underlying bullish bias.
### What to Watch
– A daily close above 105.10 may confirm a short-term reversal and expose further upside toward the 106.50 resistance area.
– If momentum falters and DXY loses 104.20 support, a move toward the next support zone at 103.50 is likely.
– The RSI is approaching the midpoint, suggesting the index is at a pivotal technical juncture.
### Summary
Monitor for a clean break above 105.10 for bullish confirmation, while a failure at this resistance leaves the index vulnerable to renewed selling toward 104.20 and lower.
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## EURUSD Forecast
The Euro remains capped by formidable resistance and faces potential weakness, particularly if the DXY gains traction.
### Technical Overview
– EURUSD formed a lower high last week after failing to sustain gains above the key 1.0900 resistance.
– A descending trend line from late 2025 persists, weighing on bullish attempts.
– Immediate support is noted at 1.0760, where buyers previously stepped in.
– The pair continues to struggle below the 200-day moving average, which often signals a bearish undertone.
### Key Levels
– **Resistance**: 1.0900 (horizontal), 1.0940 (dynamic — descending trend line)
– **Support**: 1.0760 (horizontal), 1.0680 (monthly lows)
### Trading Scenarios
– If sellers keep the pair below 1.0900, renewed pressure on 1.0760 is likely, and a daily close below this line may open the way for 1.0680.
– Alternatively, a decisive push above 1.0940 would be required to negate the bearish structure and call for further gains.
– Watch for confluence zones where moving averages intersect with key horizontal levels.
### Summary
Bias is bearish unless EURUSD reclaims and holds above 1.0900, with downside risks dominating as long as price stays capped by the descending trend line and the 200-day SMA.
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## GBPUSD Analysis
Sterling displayed resilience but is not immune to near-term weakness amid broad USD swings and diverging monetary policies.
### Technical Overview
– GBPUSD began last week by challenging 1.2760 resistance but saw repeated rejections near this level.
– Support has emerged just above 1.2600, aligning
Read more on GBP/USD trading.