**Weekly Forex Forecast for DXY, EURUSD, GBPUSD, and XAUUSD (December 8–12, 2025)**
*Based on analysis from Justin Bennett, Daily Price Action*
The upcoming trading week presents key opportunities and risks across major instruments as the year draws closer to an end. Traders are already keeping a close eye on price action for the US Dollar Index (DXY), EURUSD, GBPUSD, and XAUUSD (Gold), seeking clarity ahead of potential holiday volatility and end-of-year position squaring. In this detailed weekly forecast, we analyze critical support and resistance levels, directional biases, and what price action traders should watch over the coming days.
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## US Dollar Index (DXY)
The DXY continues to be crucial for understanding the broader forex landscape. Recent weeks have seen a contested battle between bulls and bears, with the index consolidating near a key inflection point.
**Key Observations:**
– **Support and Resistance:**
– Immediate resistance: 105.05 (previous swing highs and area of selling pressure)
– Psychological round-number resistance: 106.00
– Immediate support: 104.20 (recent swing low and consolidation area)
– Critical pivot: 103.60 (August-September swing low level)
– **Technical Analysis:**
– Price action over the prior week showed a struggle to close above 105.05, resulting in a mild pullback.
– Higher timeframes continue to show a series of higher lows since late October, keeping the broader bullish structure intact for now.
– **Directional Bias:**
– As long as the DXY continues to find bids above 104.20, the bullish outlook remains viable.
– A sustained breakout above 105.05 could open the door for a run to 106.00.
**Trading Plan and Triggers:**
– Await a daily close above 105.05 for confirmation of bullish momentum.
– Watch for a daily close below 104.20 to suggest selling momentum and a possible move toward 103.60.
– Monitor response at these critical levels for entries with tight risk management.
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## EURUSD
EURUSD, the world’s most traded currency pair, remains trapped within a range after failing to hold gains above key resistance.
**Key Observations:**
– **Support and Resistance:**
– Immediate resistance: 1.0900 (key psychological level and previous support-turned-resistance)
– Secondary resistance: 1.0980 (multi-week swing high)
– Immediate support: 1.0770–1.0800 (recent swing lows and prior breakout point)
– Key pivot: 1.0700 (major multi-month support)
– **Technical Analysis:**
– After a false breakout above 1.0900, bears have regained control, pushing prices back into consolidation territory below the resistance.
– The daily chart shows repeated rejections at 1.0900, suggesting failure by bulls to sustain the upward move.
– **Directional Bias:**
– Sellers are favored while price remains below 1.0900 on a daily closing basis.
– A decisive daily close below 1.0770 would open the way for a push to 1.0700.
**Trading Plan and Triggers:**
– Watch for bearish price action (such as bearish engulfing candles) under 1.0900 for selling opportunities.
– A close above 1.0900 would shift bias to the upside, targeting 1.0980 and potentially higher.
– Bullish reversal signals at 1.0770 could offer temporary long opportunities toward the range top.
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## GBPUSD
The British pound has shown relative resilience, but it remains range-bound and vulnerable to dollar-driven volatility.
**Key Observations:**
– **Support and Resistance:**
– Immediate resistance:
Read more on GBP/USD trading.