**Weekly Forex Forecast for DXY, EURUSD, GBPUSD, and XAUUSD (October 6-10, 2025)**
*Based on analysis by Justin Bennett, Daily Price Action*
The forex markets continue to present compelling opportunities as we enter the week of October 6-10, 2025. This week’s focus remains on the US Dollar Index (DXY), EURUSD, GBPUSD, and XAUUSD (Gold). The interplay of fundamental releases and key technical levels drive price action across these critical assets. In this forecast, we break down each market, outlining major technical patterns, likely scenarios, and actionable levels to watch.
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## US Dollar Index (DXY)
### Technical Overview
The DXY has exhibited resilience through the last several sessions, consolidating above key former resistance now functioning as support.
– The index broke through the 106.50 resistance last week, forming a new swing high at the 107.25 region.
– Momentum indicators suggest price is approaching overbought conditions on the daily, while the weekly meter remains bullish.
– The DXY closed the week above the dynamic 21-day moving average, signaling buyers’ control.
– The ascending channel that began in July remains intact, with parallel support around the 106.20-106.30 area.
### Key Levels to Watch
– **Support:** 106.30 (channel support), 105.60 (horizontal support)
– **Resistance:** 107.25 (recent swing high), 107.90
### Scenarios for the Week
– A sustained bid above 106.30 keeps DXY primed for a push toward 107.25 and potentially to the year-to-date high at 107.90.
– A failure to maintain 106.30 opens the door for a correction toward 105.60, with further downside risks if combined with a dovish surprise from FOMC minutes or disappointing US economic data.
### Outlook
Bullish momentum dominates, but caution is advised with the index nearing strong resistance. Any risk-off event or dovish Fed repricing could trigger a bout of profit-taking and push the index to retest lower support.
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## EURUSD
### Technical Overview
EURUSD remains under consistent pressure, printing fresh lows as the pair trades steadily below key moving averages.
– Last week saw a confirmed breakdown below the 1.0680-1.0700 support, now acting as resistance.
– The pair is trading within a descending channel, retesting the channel’s bottom around the 1.0530-1.0550 region.
– The daily RSI is deeply oversold, hinting at potential for short-term rebound or at least a consolidation.
### Key Levels to Watch
– **Support:** 1.0530 (channel support and September low), 1.0480 (multi-month base)
– **Resistance:** 1.0680 (former support/current resistance), 1.0780 (upper channel resistance)
### Scenarios for the Week
– If EURUSD stabilizes above 1.0530, a corrective rally toward 1.0680 is plausible, especially on US Dollar pullbacks.
– A downside break of 1.0530 sets up a test of the psychological 1.0500 and the year’s low near 1.0480.
### Outlook
Downside risks persist unless the pair can reclaim the 1.0680 region. Traders should monitor for a short-covering bounce, but strong resistance is likely to cap any gains. The backdrop remains bearish amid diverging ECB and Fed policy outlooks.
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## GBPUSD
### Technical Overview
Sterling faced renewed selling last week, closing below several critical technical supports as the Bank of England signals a more cautious stance.
– GBPUSD dropped beneath the pivotal 1.2100 support, now holding at the lowest levels since March.
– The pair remains in a well-defined
Read more on GBP/USD trading.