**Weekly Forex Forecast for DXY, EURUSD, GBPUSD, and XAUUSD (December 1–5, 2025)**
*Article inspired by Justin Bennett’s work at Daily Price Action*
As we approach the first trading week of December 2025, the Forex market is experiencing heightened volatility, driven by broader economic uncertainties and central bank policy shifts. This detailed forecast covers the US Dollar Index (DXY), EURUSD, GBPUSD, and Gold (XAUUSD), analyzing their technical landscapes and outlining potential trading scenarios for the week ahead.
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## US Dollar Index (DXY) Weekly Forecast
### Key Technical Levels
– Support: 103.00, 102.50
– Resistance: 104.30, 104.90, 105.50
### Overview
The US Dollar Index wrapped up November with choppy trading, reflecting the market’s uncertainty regarding the Federal Reserve’s next moves. Despite recent pullbacks, the DXY has managed to hold above support, suggesting a pause in its bearish momentum. Heading into December, the interplay between macroeconomic data and Fed rhetoric will determine the index’s next direction.
### Technical Analysis
– After breaking beneath the 105.00 handle in mid-November, DXY found support around 103.50, a level that coincides with a multi-week trend line.
– The index has printed a short-term base above 103.00, hinting at a potential corrective move higher.
– However, critical resistance looms between 104.30 and 104.90. Bulls must reclaim 105.00 for a more sustained rally.
– Failure to reclaim these levels could open up renewed testing of the 102.50 support zone.
### Trading Scenarios
– **Bullish Case**: If DXY closes above 104.30, look for a test of 104.90 and possibly 105.50 in the near term.
– **Bearish Case**: A clear break below 103.00 exposes the 102.50 and then the psychological 102.00 area.
**Summary**: Traders should keep an eye on the 103.00 support and 104.30 resistance for guidance.
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## EURUSD Weekly Forecast
### Key Technical Levels
– Support: 1.0850, 1.0780, 1.0700
– Resistance: 1.0970, 1.1060, 1.1120
### Overview
EURUSD closed November on a bullish note, recovering from October’s declines and pushing toward new multi-month highs. The pair’s rally has been fueled by softer US data and growing expectations of future Fed dovishness. Yet, the rally faces a critical test as the pair approaches major long-term resistance.
### Technical Analysis
– The euro has reclaimed the ascending trendline stretching from March 2023.
– Last week’s price action produced a daily close above 1.0970 but faced profit taking near 1.1000.
– The broader structure shows higher lows, maintaining bullish momentum in the near term.
– Immediate support sits at 1.0850 and 1.0780, previous breakout levels that could attract buyers if retested.
**Key Factors for EURUSD Direction:**
– Eurozone inflation and US labor data releases in the first week of December.
– Market perception of the ECB’s policy path relative to the Fed.
– Positioning near major resistance zones.
### Trading Scenarios
– **Bullish Case**: A confirmed break and weekly close above 1.0970 targets 1.1060, then 1.1120.
– **Bearish Case**: Failure at resistance followed by a breakdown below 1.0850 could shift momentum back toward 1.0780 and 1.0700.
**Summary**: Watch for sustained trading above or below 1.0970 for directional clues.
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Read more on GBP/USD trading.