**Weekly Forex Forecast for DXY, EURUSD, GBPUSD, and XAUUSD (December 8-12, 2025)**
*Original Analysis by Justin Bennett, summarized and paraphrased.*
As the forex market gears up for December’s second full trading week, several key currency pairs and gold continue to trade at important technical levels. With central bank policies, macroeconomic trends, and seasonal flows all playing a part, traders are closely watching the US Dollar Index (DXY), EURUSD, GBPUSD, and XAUUSD for potential trading opportunities. Let’s break down the technical landscape and probable scenarios for each of these markets going into December 8-12, 2025, guided by insights from Justin Bennett.
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## US Dollar Index (DXY): Critical Support Under Pressure
The US Dollar Index has remained in a corrective phase since peaking earlier this quarter. Recent price action reflects uncertainty over future Federal Reserve policies, along with shifting risk appetites. Importantly, the DXY finds itself lingering around a crucial support zone that has historically acted as a decision point for both bulls and bears.
**Technical Outlook:**
– **Key Support:** 104.50-104.80
– **Immediate Resistance:** 105.60-105.80
– **Trendline:** A trendline from January’s swing low continues to act as a dynamic support.
– **Weekly Close:** The index closed at 104.85 last week, retaining the potential for a rebound if buyers defend this area.
If the US Dollar Index holds above the 104.50 support region, a move back toward resistance near 105.60 could play out. However, a decisive daily close below 104.50 would signal a broader correction, possibly opening the door to 103.50 and the 200-day EMA.
**What Traders Should Watch:**
– **Bulls:** Look for bounce confirmation near 104.50 before initiating longs, targeting 105.60 and higher if momentum builds.
– **Bears:** A sustained break and close below 104.50 increases downside risk, with 103.50 serving as the next major horizontal support.
**Macro Considerations:**
Any signs of dovishness from Fed speakers or weak US macro data could increase bearish pressures on the Dollar, making a lower close more likely.
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## EURUSD: Approaching a Pivotal Zone
EURUSD has steadily climbed in recent sessions, taking advantage of dollar softness and somewhat improving sentiment toward the Eurozone. The pair is fast approaching a major resistance area that historically acts as a magnet for sellers.
**Technical Levels:**
– **Key Support:** 1.0850
– **Next Resistance:** 1.1000-1.1030
– **Intermediate Level:** 1.0950, a minor horizontal barrier and psychological handle
Price action shows a series of higher lows since the November base, forming a minor uptrend channel. That said, the 1.1000-1.1030 resistance zone is where EURUSD bulls have repeatedly lost steam in 2024 and early 2025.
**Scenarios for the Week:**
– **Bullish:** If euro buyers can break above the 1.1000-1.1030 resistance with conviction, it would expose the 1.1100 handle and potentially trigger stops from stubborn shorts.
– **Bearish:** Any daily bearish engulfing candle or rejection wick from 1.1000-1.1030 could usher in a swift pullback towards 1.0850, especially if accompanied by renewed dollar strength.
**Trading Strategies:**
– **Breakout traders:** Wait for a confirmed daily close above 1.1030 to consider fresh longs toward 1.1100.
– **Range traders:** Monitor for exhaustion signals within 1.1000-1.1030 to fade rallies, targeting a return to the mid-1.08
Read more on GBP/USD trading.