**Weekly Forex Forecast for DXY, EURUSD, GBPUSD, and XAUUSD (October 6-10, 2025)**
*Adapted from Justin Bennett, Daily Price Action*
As the fourth quarter of 2025 kicks off, major forex pairs and gold are at pivotal technical levels, and market participants should brace for possible volatility over the coming week. This outlook reviews the US Dollar Index (DXY), Euro/US Dollar (EURUSD), British Pound/US Dollar (GBPUSD), and Gold (XAUUSD), highlighting key levels and setups to monitor from October 6 to October 10.
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## US Dollar Index (DXY): At Resistance with Reversal Potential
The US Dollar Index (DXY) has traded within a well-defined upward channel since June, propelled by a dovish tilt from overseas central banks and recent US economic resilience. However, DXY now tests significant resistance, which could trigger a near-term pullback.
### Key Observations
– DXY climbed steadily through September, with bulls eyeing the 107.30 resistance.
– Recent candles indicate indecision as DXY approaches this barrier, with upper wicks forming near the upper parallel of the channel.
– The zone between 107.30 and 107.70 coincides with former 2023 swing highs and is reinforced by trendline resistance tracing back to May 2024.
– The daily RSI currently hovers around 75, indicating overbought conditions.
### Levels to Watch
– **Immediate resistance**: 107.30 to 107.70
– **Initial support**: 106.20 (broken resistance turned support)
– **Near-term risk**: A break below 106.20 could open a move toward 105.45 and the channel’s midline around 105.20
### Trading Considerations
– Reversal setups may form if price action prints confirmed bearish candles at or just above 107.30 over the week.
– Short-term sellers could target initial support near 106.20, while a deeper correction could extend to 105.20.
– Conversely, decisive closes above 107.70 would invalidate the corrective setup and suggest further US dollar strength toward 108.50.
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## EURUSD: Testing Long-Term Support Amid Persistent Weakness
EURUSD continues to struggle at multi-month lows, with September producing a string of lower highs and lower lows. However, the euro now approaches a cluster of support levels that could foster consolidation or even set the stage for a relief rally.
### Key Observations
– EURUSD fell to 1.0450 last week, its lowest level since November 2022.
– This downswing approaches a long-term ascending trendline from the September 2022 bottom.
– The weekly chart highlights a zone between 1.0400 and 1.0450 as historical support, with several reversal attempts marked at these levels between 2022 and 2024.
– The daily RSI is now sub-30, signaling possible exhaustion among sellers.
### Levels to Watch
– **Immediate support**: 1.0430 to 1.0450 (historical and trendline support)
– **Next support**: 1.0250 (lows from Q4 2022)
– **Resistance**: 1.0600 (former support from July to September), with the next key barrier at 1.0750
### Trading Considerations
– Aggressive bulls may consider watching for bullish price action signals (pin bars, engulfing patterns) on daily or H4 charts near 1.0450.
– If EURUSD breaks and closes below 1.0430, round number support at 1.0250 is the next downside target.
– A confirmed rebound could target resistance at 1.0600 and, if momentum allows, 1.0750.
– The broader trend remains bearish, so counter
Read more on GBP/USD trading.