**Weekly Forex Forecast: DXY, EURUSD, GBPUSD, NZDUSD, and XAUUSD (September 8-12, 2025)**
*Based on insights and analysis from Justin Bennett at DailyPriceAction.com*
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The forex market remains at a crucial inflection point as summer volatility gives way to the start of a historically active trading season. September often sets the tone for the remainder of the year, as central bank policy, key data releases, and geopolitical developments converge to drive price action across major currency pairs and precious metals. In this week’s comprehensive forecast, we will evaluate the technical landscape and fundamental drivers for the US Dollar Index (DXY), EURUSD, GBPUSD, NZDUSD, and XAUUSD (Gold), drawing on the latest analysis provided by Justin Bennett at DailyPriceAction.com.
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### US Dollar Index (DXY)
The US Dollar Index continues to anchor global forex sentiment, acting as the primary gauge for USD performance against a basket of major currencies. Last week, DXY broke above a key resistance zone, signaling bullish intent but also facing immediate headwinds.
#### Key Levels and Technical Picture
– **Support:** 105.00-105.20 zone.
– **Resistance:** 107.00, with further interest around 108.50.
– The recent clear break above the 105.20 area turned this former resistance into support.
– The daily timeframe shows a series of higher highs and higher lows, underpinning a constructive trend.
#### Focal Points for the Week
– **Sustained holding above 105.20** could encourage buyers to target the psychological 107.00 figure.
– Any move below 105.00 would represent a potential trap for late longs and may set in motion a correction toward 104.30.
– Macro fundamentals, including next week’s US inflation print and fresh updates from Federal Reserve policymakers, are likely catalysts for momentum.
#### Summary
– As long as DXY stays above the 105.20 level, the technical bias remains bullish.
– Watch for price action at 107.00, as a decisive close above this level will open the door for the next leg higher.
– Upcoming US data releases remain critical to sustaining the dollar’s strength.
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### EURUSD
The world’s most traded currency pair remains locked within a persistent downtrend, weighed down by both a resurgent US dollar and lingering Eurozone headwinds. However, signs of potential exhaustion are emerging as the pair probes major support zones.
#### Key Levels and Technical Picture
– **Major Support:** 1.0720-1.0730 region.
– **Resistance:** 1.0850 and 1.0900.
– EURUSD tested the 1.0720 support last week but showed hesitation to break decisively lower, forming a possible short-term base.
– On higher timeframes, the downtrend remains intact until a daily close clears above 1.0850.
#### Focal Points for the Week
– **Support at 1.0720-1.0730**: Bullish defenders are likely to make a stand here, but failure could lead to a test of 1.0650.
– **Resistance at 1.0850**: A break above this level would negate recent weakness and target 1.0900 or higher.
– Influences will come from incoming US inflation numbers and ECB commentary, as traders look for divergence in future rate paths.
#### Trading Outlook
– Range-bound trading is expected unless 1.0720 or 1.0850 gives way on a closing basis.
– A daily close below 1.0720 exposes more downside, while a rally and close above 1.0850 would suggest a corrective move is beginning.
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### GBPUSD
Sterling has had a choppy run as UK macro data continues to send mixed signals, while the greenback’s dominance suppresses any sustained GBP
Read more on GBP/USD trading.