Title: Weekly Forex Forecast for DXY, EURUSD, GBPUSD, USDJPY, and XAUUSD (October 13–17, 2025)
Original Author: Justin Bennett (Published on DailyPriceAction.com)
Overview
As the forex markets head into the week of October 13–17, 2025, traders continue to monitor key levels across major currency pairs and gold, particularly amid economic uncertainty, central bank speculation, and technical developments. This analysis offers a detailed breakdown of the U.S. Dollar Index (DXY), EURUSD, GBPUSD, USDJPY, and XAUUSD, highlighting price action, support/resistance zones, and potential outcomes based on chart patterns and momentum. All technical insights are based on price action trading methods.
This extensive weekly forecast aims to inform and guide traders, presenting opportunities and risks along with directional bias based on current trends.
1. U.S. Dollar Index (DXY)
The U.S. Dollar Index remains a key focus amid central bank tightening expectations and inflation metrics. Technically, DXY maintains a strong bullish bias as it consolidates near multi-month highs.
Key Technical Highlights:
– The DXY has been trending within a well-defined ascending channel since July 2025, consistently generating higher highs and higher lows.
– Last week, the index carved out a narrow consolidation range just below the 107.20 resistance, forming a possible bullish continuation pattern.
– Daily support levels can be found at 106.40 and 106.00, with 105.60 serving as critical structural support in case of a pullback.
– A decisive breakout above 107.20 could lead to a retest of the 108.00 region, last visited in early 2023.
Outlook:
As long as DXY holds above 106.00, the broader uptrend remains intact. A confirmed breakout above 107.20 would favor the bulls and likely pressure all major dollar pairs in the process. Caution is warranted near the highs, as price could face short-term exhaustion before another leg upward.
2. EURUSD
The euro continues to trade under pressure amid a resilient U.S. dollar and subdued Eurozone economic performance. EURUSD extended its decline last week, threatening to challenge multi-month lows.
Technical Observations:
– EURUSD has formed a clean descending channel on the daily chart, suggesting an entrenched bearish market structure.
– A failed breakout attempt above the 1.0630 region last week has turned into a key level of resistance heading into this week.
– Immediate support lies at 1.0500, followed by the psychological 1.0450 area.
– The pair has respected lower highs, with each rally being sold into—common behavior in bear markets.
Expectations:
– As long as EURUSD remains below the 1.0630–1.0650 region, bearish momentum is likely to continue.
– A clear break and close below 1.0500 would open the door for a further decline toward 1.0450 or even 1.0350 in the medium term.
– Bulls would need a daily close above the upper trendline of the channel or over 1.0650 to shift momentum.
3. GBPUSD
Sterling has shown signs of resilience recently but remains largely range-bound amid diverging economic signals and BOE policy considerations. The pair trades in consolidation, awaiting a decisive break.
Critical Technical Levels:
– The broader trend remains bearish, but price appears to be carving out a potential falling wedge formation, signaling possible basing.
– GBPUSD bounced from the 1.2100 support region last week but faces strong resistance around 1.2300–1.2350.
– Short-term support resides around 1.2170, followed by the psychological 1.2100 level.
Trade Scenarios:
– A confirmed breakout above 1.2350, along with a break of the falling wedge pattern,
Explore this further here: USD/JPY trading.