**Weekly Forex Forecast for DXY, EURUSD, GBPUSD, EURAUD, and XAUUSD (July 21–25, 2025)**
*Adapted from the original article by Justin Bennett, Daily Price Action*
The final full week of July 2025 brings a rich set of technical setups for traders across the major pairs and gold. As market participants anticipate significant economic events and central bank commentary, the U.S. Dollar Index (DXY), EURUSD, GBPUSD, EURAUD, and XAUUSD are positioned at meaningful technical levels that may shape price action for the remainder of the month. Here we break down each chart and highlight the price points to watch, including potential trading scenarios based on prevailing trends and market sentiment.
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## U.S. Dollar Index (DXY): Testing a Key Inflection Point
The U.S. Dollar Index ended the prior week on a mixed footing, closing near the 104.00 handle after flirting with downside momentum. The weekly close below 104.30 marks an area of vulnerability for bulls, elevating the risk of further declines should the index fail to reclaim lost territory.
### Technical Highlights
– DXY broke below the critical horizontal support at 104.30, last tested in May.
– The 104.00 handle acts as a psychological level and immediate support.
– 103.70 emerges as next support, marking a structural pivot zone from late Q2.
– Resistance remains at 104.30, followed by the multi-week trend line near 104.85.
### Trading Scenarios
– Sustained positioning under 104.30 opens a window for a test of 103.70, where buyers previously defended the lows post-April NFP.
– A bullish regain of 104.30 would be required to negate immediate bearish pressure and target 104.85 and potentially 105.20.
– Watch for U.S. economic data midweek, which could tip sentiment and fuel volatility in the greenback.
The DXY’s performance early in the week, especially at 104.00 and 104.30, will shape broad USD momentum across the majors.
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## EURUSD: Consolidation Break Looms
EURUSD spent much of last week consolidating within a tight range, capped by 1.0900 resistance and underpinned by the familiar 1.0810–1.0830 support band. Repeated tests of these levels have compressed volatility, setting the stage for a directional breakout.
### Technical Highlights
– 1.0900 stands as the immediate resistance, with 1.0935 as secondary upside resistance near the June swing highs.
– The 1.0830–1.0810 zone is a well-established support area, forming the floor since the June ECB pivot.
– Downside extension may bring the 1.0770 area into view, a prior reaction low in mid-May.
### Trading Scenarios
– A daily close above 1.0900 clears a path for bulls to approach the June highs at 1.0935 and possibly 1.0965.
– Failure to hold 1.0810 would expose a swift move toward 1.0770, which could accelerate if the DXY strengthens.
– Range-bound strategies remain viable while price stays between 1.0810 and 1.0900.
Macro drivers, such as Eurozone flash PMIs and U.S. GDP data, will be crucial this week, offering the potential for breakout moves as traders reposition for the August ECB policy update.
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## GBPUSD: Held Below 1.2960 Resistance
Sterling kept its bullish structure largely intact last week but ran into resistance at 1.2960, unable to sustain gains above this significant boundary. This marks the third failed attempt since late June, suggesting some exhaustion in the upward momentum.
### Technical Highlights
– Key resistance persists at 1.2960, a convergence
Read more on GBP/USD trading.