**Weekly Forex Forecast for DXY, EURUSD, GBPUSD, USDCHF, and XAUUSD (July 28 – August 1, 2025)**
*By Justin Bennett, as featured on Daily Price Action*
The final trading week of July 2025 introduces pivotal market events and technical patterns across the major US dollar pairs and gold. Price action traders are keeping a sharp eye on these developments, with monetary policy updates and high-impact data scheduled to shape market sentiment.
Below, we provide a comprehensive analysis of the US Dollar Index (DXY), as well as EURUSD, GBPUSD, USDCHF, and XAUUSD. The following forecast leverages key support and resistance levels, technical breakouts, and macro themes to provide trading insights for the week of July 28 to August 1, 2025.
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### US Dollar Index (DXY)
The DXY has persistently climbed higher over the past quarter, reflecting aggressive Federal Reserve language and resilient US economic readings. The index remains buoyed by a hawkish monetary policy stance, pushing it toward multi-month highs.
**Technical Overview:**
– **Current Structure:** The DXY remains in a well-defined ascending channel, currently testing resistance near 107.00, a level that has served as a key inflection point throughout April and early May.
– **Support Levels:** Immediate support is seen around 105.80, with a more substantial level near the 104.60 region.
– **Resistance Area:** The 107.00 to 107.60 zone caps the immediate upside. If the DXY closes above this area, we could see a stretch toward the 108.80 targets established in January 2024.
**Trade Considerations:**
– A decisive daily or weekly close above 107.60 would signal further greenback strength, favoring dollar bulls for extensions toward the 108.80 resistance.
– However, a failed breakout and rejection from current highs could trigger a retreat to the 105.80-104.60 area.
– Given the US Federal Reserve’s upcoming statement this week, traders should expect heightened volatility. Watch for overextensions and potential false breakouts.
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### EURUSD
The EURUSD pair continues to exhibit strong bearish momentum, weighed down by contrasting central bank policies and weaker eurozone economic data. Sellers have maintained control since the pair broke below the pivotal 1.0800 support back in early June.
**Technical Overview:**
– **Bearish Channel:** EURUSD trades within a descending channel that has contained price action since late March. The pair recently broke below the 1.0700 level, which now acts as resistance.
– **Support Levels:** The next significant target lower is the 1.0600 handle, with intermediate support near 1.0640.
– **Resistance Area:** The new barrier is 1.0700 to 1.0730. Only a sustained move above 1.0730 would threaten the existing bearish structure.
**Trade Considerations:**
– Continuation lower is likely as long as the 1.0700-1.0730 area holds as resistance.
– Closing below 1.0600 would invite further declines toward 1.0520 and potentially 1.0480.
– Watch for exhaustion patterns near 1.0600, which has aligned with buying interest in previous months.
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### GBPUSD
Sterling has fared slightly better than the euro over the last few weeks, bolstered by better-than-expected UK inflation figures and some speculation regarding the timing of future Bank of England rate adjustments. However, the pair faces important resistance and mixed technical signals.
**Technical Overview:**
– **Broad Range:** GBPUSD still trades within a wider range, bounded by support at 1.2570 and resistance at 1.2800.
– **Near-Term Structure:** The pound is retesting broken support at 1.2650, which now
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