**Weekly Forex Forecast for DXY, EURUSD, GBPUSD, USDCHF, and XAUUSD: July 28 – August 1, 2025**
*Based on analysis by Justin Bennett at Daily Price Action*
The final trading week of July brings heightened anticipation in the Forex market as traders brace for volatile moves across major currency pairs and gold. As summer trading thins liquidity in some sessions, technical inflection points and key economic releases will play critical roles in setting price action. Here’s a comprehensive examination of the United States Dollar Index (DXY), EUR/USD, GBP/USD, USD/CHF, and XAU/USD heading into July 28 to August 1, 2025.
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## DXY (US Dollar Index)
### Weekly Technical Overview
The DXY has been consolidating in a tighter range, with market participants wary ahead of crucial macroeconomic catalysts. After the previous week’s modest decline and repeated rejections near the mid-106.00s, the greenback faces an inflection point as it hovers above significant support.
**Key Technical Levels:**
– **Support:** 105.00 (horizontal support, previous breakout zone), 104.40 (secondary support, trend-defining low)
– **Resistance:** 106.35–106.50 (pivot zone, tested repeatedly since March 2025), 107.00 (psychological barrier)
### Trading Considerations
– The DXY daily chart reveals a converging triangle, with lower highs and higher lows suggesting a breakout is imminent.
– Any sustained close below 105.00 would indicate bearish momentum, possibly extending towards 104.40 and below that, the 103.60 support.
– Conversely, breaking above 106.50 could spur a retest of 107.00 and potentially fuel a broader rally towards the 108.00 handle.
### Macro Events to Watch
– **US Federal Reserve Rate Decision:** The upcoming FOMC statement will be scrutinized for forward guidance. The market expects steady rates but will take note of shift in tone or language around inflation targets.
– **US Q2 GDP Advance Estimate:** Initial GDP readings could sway directional bias, especially if growth surprises.
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## EUR/USD
### Weekly Technical Overview
The euro continues to struggle against the US dollar, boxed within a defined range. Sellers have repeatedly capped rallies just beneath 1.0900. Meanwhile, buyers have staunchly defended the critical 1.0730-1.0750 support band.
**Key Technical Levels:**
– **Support:** 1.0750–1.0730 (Major support, multiple rebuffs since May)
– **Resistance:** 1.0880 (range top, previous swing high), 1.0920 (50-week MA)
### Trading Considerations
– A breakdown under 1.0730 may signal renewed bearish pressure, with downside targets at 1.0660 and 1.0600.
– Bulls need a daily or weekly close above 1.0880 for confirmation of a reversal, potentially testing 1.1000 where the multi-month downtrend line converges.
– Price action near the lower support band will prove decisive. Tight consolidation hints at a volatility expansion ahead, so monitor for fakeouts.
### Key Economic Catalysts
– **Eurozone Inflation Data:** Any upside surprise will challenge the ECB’s dovish outlook and could propel the euro higher.
– **ECB Policy Signals:** Comments from ECB officials may add volatility, especially as recession fears grow in core European economies.
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## GBP/USD
### Weekly Technical Overview
Cable’s choppy advance lost steam after repeated rejections below 1.2900. While buyers defend the 1.2650 breakout region, directional conviction remains elusive as the pair navigates through trendline-heavy terrain.
**Key Technical Levels:**
– **Support:** 1.2710 (current pivot), 1.2650
Read more on GBP/USD trading.