**Weekly Forex Forecast for DXY, EURUSD, GBPUSD, and XAUUSD (December 8-12, 2025)**
*Based on analysis by Justin Bennett, original article from Daily Price Action*
As the markets move into the second week of December 2025, the US Dollar Index (DXY) and major currency pairs such as EURUSD, GBPUSD, as well as gold (XAUUSD), are positioned at potentially pivotal levels. This comprehensive weekly forecast details the technical outlook and key levels to watch, based on price action and current market dynamics.
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## US Dollar Index (DXY) Technical Outlook
The DXY closed last week just above the key horizontal support near 104.50, continuing to consolidate following late-November volatility. The index remains range-bound between established support and resistance, as traders await directional catalysts heading into the year’s end.
**Key Technical Features:**
– **104.50 Support Zone:**
The 104.50 area has served as a crucial horizontal base for DXY since mid-October. Price action has consistently found demand here, with buyers stepping in to defend this level.
– **106.00-106.30 Resistance Region:**
Repeated attempts to push the DXY beyond 106.00 have failed since late October, highlighting a technical ceiling capping any bullish advances.
– **Recent Price Action:**
Bearish pressure intensified in late November when the DXY broke below a short-term ascending trend line. This shift prompted a retest of the 104.50 baseline last week.
– **Consolidation Patterns:**
Range-bound price action between 104.50 and 106.30 suggests indecision. Longer-term trend direction will likely hinge on which boundary is decisively breached.
**Scenarios to Watch:**
– A sustained break below 104.50 could open the door for a renewed bearish push toward 103.50 and potentially 102.80.
– If bulls reclaim momentum above 106.00, we could see a rally toward 107.00 and potentially retest this year’s highs.
**What to Monitor:**
– Reaction to 104.50 this week will be pivotal. A clear close below this level on the daily chart raises the probability of a broader USD selloff.
– Market participants should keep an eye on upcoming US economic releases, which may provide the necessary catalyst for a breakout in either direction.
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## EURUSD Forecast
The EURUSD continues to oscillate within its multi-month range, displaying a textbook mean-reverting behavior that has challenged both bulls and bears. The pair ended last week up modestly, as euro buyers continue to fend off bearish attacks near support.
**Key Technical Features:**
– **1.0800 Support Level:**
The 1.0800 zone, tested repeatedly since early November, remains a formidable foothold for euro bulls. False breaks below this level have typically avoided follow-through.
– **1.1000 Psychological Resistance:**
A series of lower highs illustrates sellers’ dominance in the 1.1000 region, reaffirming this as the area to beat in order to confirm further upside.
– **Recent Candlestick Structures:**
Last week’s daily candles featured multiple long lower wicks at 1.0800, indicating buying interest and an unwillingness to break down convincingly.
– **Trend Context:**
The overall structure is defined by a lateral movement, as the pair digests prior losses and trades in a well-defined horizontal channel.
**Scenarios to Watch:**
– A daily close above 1.1000 would likely confirm bullish momentum, targeting 1.1140 and 1.1270 in extension.
– A confirmed breakdown below 1.0800 may signal a deeper retracement, exposing the 1.0720 area, then 1.0650.
**Points of Confluence:**
– The 100
Read more on GBP/USD trading.