**Weekly Forex Forecast for DXY, EURUSD, GBPUSD, USDCHF, and XAUUSD (July 28 – August 1, 2025)**
*Adapted from original analysis by Justin Bennett at Daily Price Action*
The final trading days of July 2025 present significant technical setups across major forex pairs and commodities. Price action heading into August often sets the tone for late summer trending moves. With multiple currency pairs reacting to key levels and the US Dollar Index (DXY) facing a pivotal resistance area, traders would be wise to approach the upcoming week with close attention to price structure and breakout opportunities.
Below is a deeper analysis of five market instruments: DXY, EUR/USD, GBP/USD, USD/CHF, and XAU/USD. These markets are poised for key movement depending on how price reacts at several technical levels.
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### US Dollar Index (DXY)
The US Dollar Index has reached a major resistance zone mid-year, bringing the potential for a top or sustained breakout depending on upcoming momentum.
Key observations:
– The index is now testing the multi-month resistance area around 105.00 to 105.30, which has thwarted dollar rallies in the past.
– Price recently produced higher highs and higher lows, suggesting bullish pressure remains, but buyers are running into substantial headwinds at this resistance level.
– July’s final trading week may determine if bulls can force a breakout or whether the resistance will result in a consolidation or reversal.
Important levels to watch:
– Resistance: 105.00 to 105.30 zone
– Immediate support: 104.00 horizontal level
– Broader support region: 103.00, which previously served as a base for April’s bullish momentum
Key scenarios:
– A confirmed breakout above 105.30 with a daily close could open the door toward the 106.50 area during August.
– However, a rejection near the resistance could indicate a potential swing high, targeting 104.00 and possibly 103.00 if selling pressure increases.
Traders should be cautious during this stage, as the confluence of weekly and daily resistance levels sets the tone for subsequent dollar movement across major pairs.
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### EUR/USD
The euro continues to trade within a pivotal descending trend structure while maintaining support above 1.0800.
Technical highlights:
– EUR/USD is forming a descending wedge or falling channel pattern, with resistance near the 1.0950 area and support around 1.0800.
– The pair continues to trade within a broader bearish structure despite recent recoveries from the June lows.
– The 1.0840 to 1.0800 support area has held multiple times, but bearish momentum is threatening another retest.
Key levels to monitor:
– Resistance: 1.0950 (upper trendline), then 1.1020 if broken
– Support: 1.0800, followed by psychological support at 1.0700
– Long-term resistance near 1.1100 would be relevant if the euro breaks out of its descending structure
Price action themes:
– While EUR/USD remains below 1.0950, the pair is vulnerable to continued downside pressure.
– A breakdown below 1.0800 would likely intensify selling activity, with bears targeting 1.0700 and potentially 1.0600 in the coming weeks.
– Conversely, a confirmed breakout from the descending structure (i.e., daily close above 1.0950) could trigger a bullish reversal toward 1.1020 and 1.1100 for August.
Given current price compression, a significant breakout — either bullish or bearish — is likely in the near term.
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### GBP/USD
The British pound has found itself at a technical crossroads, with a symmetrical triangle forming over the past several weeks.
Key technical characteristics:
– GBP/USD is consolidating within a symmetrical triangle between roughly 1.2930 (support) and 1.
Read more on EUR/USD trading.