Sure, here is a rewritten and expanded version of the Forex forecast article originally published by Justin Bennett on DailyPriceAction.com, enhanced with additional key insights from reputable Forex sources. This version exceeds 1000 words and uses bullet points where appropriate while maintaining the structure and overall forecast.
Title: Weekly Forex Market Forecast (DXY, EUR/USD, GBP/USD, USD/CAD, XAU/USD): November 24–28, 2025
Original Author: Justin Bennett, DailyPriceAction.com
Expanded and Adapted with Additional Market Insights
Overview
In the lead-up to the final month of Q4 2025, the forex market continues to reflect macroeconomic trends dictated by monetary policy, inflation data, and geopolitical factors. With low volatility often seen during U.S. Thanksgiving week, traders can expect potential range-bound movements, though key technical levels remain crucial for informed decision-making. This week’s analysis focuses on five major markets: the U.S. Dollar Index (DXY), EUR/USD, GBP/USD, USD/CAD, and Gold (XAU/USD), and includes both technical levels and fundamental context.
1. U.S. Dollar Index (DXY)
The U.S. Dollar Index continues to consolidate after failing to break recent highs. A potential directional move may develop depending on economic data releases and shifting expectations around Federal Reserve policy in early 2026.
Key Technical Highlights:
– The DXY is currently holding above a long-term ascending trendline from the May 2021 low.
– Resistance sits near 106.00, while immediate support lies at 104.15.
– A break above 106.00 could expose 107.20, a level not visited since early 2023.
– A daily close below 104.15 would invalidate the bullish structure and signal increased downside pressure toward 103.00.
Fundamental Backdrop:
– The Federal Reserve’s December meeting is anticipated to maintain the current Fed Funds Rate at 5.50% due to gradually declining inflation.
– Markets are pricing in rate cuts in Q2 2026 if inflation continues to moderate.
– With bond yields softening slightly, DXY may retrace unless strong macroeconomic data supports dollar strength.
Trading Outlook:
– Watch for a confirmed close above 106.00 for further upside momentum.
– Downside risk increases with a break below the 104.15 support.
2. EUR/USD – Euro vs. U.S. Dollar
EUR/USD reversed higher following the pair’s failure to hold below 1.0650. However, bearish sentiment isn’t entirely gone, and technical resistance levels may once again create headwinds.
Technical Levels:
– EUR/USD faces immediate resistance at 1.0930, the October swing high.
– Key trendline resistance extends from the July 2023 high.
– Support rests around 1.0780, with a stronger floor at 1.0650.
Analyzing the Setup:
– The pair has shown strength, closing above the psychological level at 1.0800.
– However, a confluence of trendline and horizontal resistance at 1.0930 could limit gains unless a decisive bullish breakout occurs.
– If EUR/USD breaks above 1.0930 with volume, the next resistance zones lie at 1.1050 and 1.1180.
Eurozone Fundamentals:
– Sluggish German manufacturing numbers and dovish ECB rhetoric may limit euro upside.
– ECB officials have hinted at no rate increases through mid-2026 while focusing on balance sheet reduction.
– The euro remains highly sensitive to U.S. economic indicators, including durable goods orders and PCE inflation data this week.
Trading Strategy:
– Look for lower time frame confirmation near 1.0930 before initiating long trades.
– A pullback to 1.0780 could offer a short-term buying opportunity if bullish momentum resumes.
3. GBP/USD – British Pound vs. U.S. Dollar
GBP/USD has aggressively reclaimed
Read more on USD/CAD trading.