**Forex Mid-Week Technical Outlook for DXY, EURUSD, GBPUSD, and USDCHF (July 23, 2025)**
*Original analysis by Justin Bennett, Daily Price Action*
As the trading week unfolds, the global FX market is adapting to shifting fundamentals and technical catalysts. The U.S. Dollar Index (DXY) finds itself at a pivotal junction, with upcoming Federal Reserve policy decisions and crucial economic indicators paving the way for increased volatility. This in-depth technical outlook for July 23, 2025, examines DXY, EURUSD, GBPUSD, and USDCHF, identifying key support and resistance levels, chart patterns, and price action signals to help traders plan the remainder of the week. All analysis is inspired by Justin Bennett at Daily Price Action.
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## US Dollar Index (DXY) Technical Analysis
The DXY has staged a sharp recovery from its June lows, reclaiming key levels as traders reposition ahead of anticipated monetary policy updates. However, the US Dollar faces stiff headwinds as it approaches major resistance, with investors increasingly divided on the path of US rates.
**Current DXY Snapshot:**
– Last traded near 103.95
– Testing a pivotal trendline and overhead supply zone
**Key Technical Features:**
– The index has respected an ascending trendline from the March 2025 swing low.
– A descending resistance line from the January 2025 peak is compressing price, culminating in a wedge formation.
– The 104.20–104.50 zone remains the key resistance cluster.
– Immediate support is seen at 103.40, further backed by 102.90.
**Chart Patterns & Price Action:**
– The weekly chart suggests the DXY is at risk of a significant breakout or breakdown as it nears the apex of the wedge.
– Daily price action shows repeated rejection wicks at the upper trendline, implying seller aggression near resistance.
**Potential Scenarios:**
– **Breakout Above 104.50:** Would likely unleash a broader run toward 105.20, and perhaps the January highs at 105.70.
– **Failure at Resistance:** Sustained closes below 103.40 raise the risk of a deeper retracement to 102.40 or even 101.60.
**Weekly Strategy Points:**
– Monitor DXY price behavior around the 104.20–104.50 region for signs of buyer exhaustion or breakout momentum.
– Use daily close confirmations to validate any breakout/down.
– Adjust stops and position sizing in response to increased volatility near the Fed decision and US GDP releases.
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## EURUSD Mid-Week Technical Outlook
The euro’s rebound from late June lows has stalled as DXY strength caps further upside. The single currency is tracking a well-defined horizontal range, bookended by clear technical barriers.
**Current EURUSD Snapshot:**
– Last traded near 1.0890
– Momentum indicators point to indecision amid lower volatility
**Technical Structure:**
– The 1.0920–1.0935 band continues to act as stiff resistance, reinforced by the descending trendline from April 2025 highs.
– Key support is layered at 1.0830, marking the mid-July swing low.
– The 1.0780 level stands as the next major downside target should the support break.
**Notable Price Action Developments:**
– Intraday rejections at resistance suggest buyer fatigue.
– A sequence of higher lows from the 1.0650 area remains intact, but the rally lacks momentum.
**Scenarios to Watch:**
– **Bullish Breakout:** Sustained closes above 1.0935 activate a broader push toward 1.1000 and 1.1075.
– **Bearish Breakdown:** A close below 1.0830 exposes 1.0780, with bearish continuation risks toward the 1.0700–1.0650 area.
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