**Weekly Forex Forecast for DXY, EURUSD, GBPUSD, and XAUUSD: October 6-10, 2025**
*Original analysis by Justin Bennett, Daily Price Action*
The first full week of October is set to deliver heightened volatility across the forex markets as key pairs face technical inflection points. Developments around the US Dollar Index (DXY), Euro (EURUSD), British Pound (GBPUSD), and Gold (XAUUSD) will be closely watched by traders seeking to navigate this dynamic landscape efficiently. Below is a comprehensive breakdown of major technical levels and forecast scenarios for each market, guided by price action and market structure.
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## US Dollar Index (DXY) Weekly Technical Picture
The US Dollar Index has been on an impressive bullish run since the early summer months, consistently printing higher lows and highs on both daily and weekly timeframes. The greenback’s strength has been largely fueled by hawkish sentiment from the Federal Reserve combined with fragility in both the Euro and British Pound.
### Key Technical Developments
– **Bullish Structure:** The DXY exhibits a firm uptrend, with the critical area just below 107.00 serving as a structural pivot. Last week’s price action saw the index closing above this zone, confirming bullish intentions for the near term.
– **Support & Resistance:**
– Immediate support is found near 106.50, a region that previously marked resistance on multiple occasions.
– Key resistance to monitor is 108.00, an area last encountered in late 2022, which could attract sellers on any initial test.
– **Trend Continuation:** Any pullback toward 106.50 is likely to attract buyers. A close below this level could open downside risk, but the broader trend will remain intact as long as the DXY holds above the 104.70 swing low.
### Scenarios for the Week
– **Upside Target:** Sustained buying could propel the DXY to retest 108.00, with potential extension toward 108.50 if bullish momentum persists.
– **Reversal Warning:** A weekly close below 106.50 would warrant caution, as it may signal the onset of a deeper correction toward 105.80 or even 104.70.
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## EURUSD Weekly Forecast
The Euro continues to grapple with downward momentum, unable to break free from its multi-week selloff against the US dollar. Several failed attempts to reclaim critical resistance points underscore ongoing weakness. Last week’s price action saw EURUSD pressured below the 1.0600 handle, closing the week in a vulnerable position.
### Technical Levels to Watch
– **Primary Resistance:** 1.0630 is pivotal; it served as both support and resistance in recent months and will dictate whether sellers remain firmly in control.
– **Support Structure:** The nearest downside target rests at 1.0500, a psychological milestone and support dating back to early 2023.
– **Bearish Trend:** The descending trendline from the July high continues to cap rebound attempts. Until this is broken convincingly, selling pressure is likely to persist.
### Weekly Scenarios
– **Bearish Case:** Continued rejection near 1.0630 could see a swift move toward 1.0500, and possibly deeper into the 1.0450-1.0400 zone on heightened bearish sentiment.
– **Bullish Reversal:** Bulls must reclaim and secure a weekly close above 1.0630 to neutralize immediate selling pressure. Only then could the pair mount a recovery toward 1.0750, with 1.0850 as a further upside objective.
### Summary Points
– The path of least resistance remains lower unless EURUSD closes above the pivotal 1.0630 threshold.
– Watch for potential false break setups near 1.0500, which could spur short-term rebounds but will need confirmation before considering larger trend shifts.
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## GBPUSD Weekly Outlook
Read more on GBP/USD trading.