**Weekly Forex Forecast for DXY, EURUSD, GBPUSD, and XAUUSD (October 6-10, 2025)**
*Based on analysis from Justin Bennett at Daily Price Action*
The upcoming trading week for the forex market promises potential volatility as key levels and trends continue to assert influence over the majors and gold. As we look ahead to October 6-10, 2025, traders should remain alert to technical developments and possible shifts in market sentiment for the US Dollar Index (DXY), EURUSD, GBPUSD, and XAUUSD. Below is an in-depth technical overview, featuring vital price zones, mid-term trends, and probable scenarios for each instrument.
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### US Dollar Index (DXY)
The DXY has maintained its bid tone, pressing near multi-month highs. The fundamental context bolstering the dollar—such as prospective Federal Reserve policy moves, persistent inflation, and global economic uncertainty—continues to favor the greenback. Yet, technical conditions suggest a possible inflection, as the index tests both resistance and overbought conditions.
**Key Technical Factors:**
– The DXY currently trades above its ascending channel from the June 2025 low.
– Resistance near 107.70 has proven resilient; this region capped advances during late Q3.
– Immediate support rests at 106.50, with the next significant support at the psychological 105.00 horizontal.
– Daily RSI readings are nearing overbought territory, hinting at potential exhaustion, but momentum remains positive as long as the DXY closes above 106.50.
**Near-Term Scenarios:**
– A decisive break above 107.70 could unlock the 109.00 handle, targeting highs not seen since early 2023.
– A failure to sustain above 107.00 could trigger a pullback to retest channel support near 106.00 and, potentially, deeper toward 105.00.
– Traders should monitor for bearish divergences or false breakouts at current highs as an early warning of possible corrections.
**Trading Considerations:**
– Trend-followers should respect the prevailing bullish structure while being cautious of abrupt reversals if critical resistance levels reject price action.
– Watch for Federal Reserve communication and treasury yield movement as possible fundamental catalysts.
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### EURUSD
EURUSD remains under prolonged selling pressure, trading at multi-month lows. The symmetry between ECB-FED policy divergence and growing concerns in the eurozone economy continues to weigh on the pair. However, extreme bearish sentiment and the proximity of technical supports urge caution for those expecting an unimpeded downtrend.
**Key Technical Factors:**
– The descending channel from July persists, with price action contained below the 1.0750 breakdown point.
– Firm support is seen at the 1.0450 weekly level, which acted as a springboard in late Q4, 2023.
– Below it, 1.0350 emerges as the next historical support from the major 2022-2023 uptrend reversal.
– The 4-hour chart reveals downward momentum but hints at waning seller conviction as bearish candles lose their size near support.
**Near-Term Scenarios:**
– Sustained closes below 1.0450 expose the pair to fresh yearly lows, with the psychological level of 1.0250 a medium-term target.
– A bullish rebound may retest the 1.0600 former support, which now acts as resistance. Only a weekly close above 1.0750 would signal a meaningful reversal.
– Watch for potential double-bottom formations or bullish divergence on daily oscillators, which could signal a short-term corrective rally.
**Trading Considerations:**
– Sellers may seek continuation trades on failed rallies beneath 1.0600, using stops above 1.0750.
– Longs are counter-trend; any bullish set-up should target quick, tactical engagements near supports with tight risk management.
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### GBPUSD
Read more on GBP/USD trading.