The forex market turned what was supposed to be a quiet Friday into a battlefield following Fed Chair Powell\u2019s comments. <\/p>\n
Check out today\u2019s video to see how it changes things for next week. Get my exact trade plan for the DXY, EURUSD, GBPUSD, USDCHF, and XAUUSD. <\/p>\n<\/p>\n
US Dollar Index (DXY) Forecast <\/p>\n
The DXY was bullish for most of the week, bouncing from the 97.70 support level and also breaking a key resistance level from August. Those moves presented several nice trading opportunities this week.<\/p>\n
However, what was supposed to be a quiet Friday was anything but. Fed Chair Powell stated that it may be time for a policy change. In other words, the Fed will likely start cutting rates in September.<\/p>\n
Those comments triggered wild swings in the forex market, with the DXY dropping 0.7% in a matter of minutes.<\/p>\n
If the US dollar loses 97.90 on Friday, it could set up a short opportunity next week. Traders should be aware, however, that the 97.70 lows are likely to attract buyers.<\/p>\n
A DXY breakdown could set up a move to the bottom of the 2011 ascending channel support near 96.80. That could also align with the August channel support, should the market lose the 97.70 to 97.90 support area.<\/p>\n
Weekly Forex Forecast For DXY, EURUSD, GBPUSD, USDCHF, and XAUUSD (August 25-29, 2025) 6 EURUSD Forecast <\/p>\n
EURUSD tested the key support I\u2019ve mentioned at 1.1587. I pointed out this area as one to watch several times this week.<\/p>\n
Not only was it a key support for the euro, but there were also two poor lows (unfinished auctions) at 1.1599 and 1.1590. These levels often serve as \u201cmagnets\u201d for a market, which was certainly the case this week.<\/p>\n
Powell\u2019s comments on Friday sent the EURUSD rocketing higher by more than 100 pips in just 30 minutes. However, I\u2019d expect late longs to be targeted by market makers early next week, so chasing here is ill-advised.<\/p>\n
One EURUSD level to watch closely next week is the August 5th ascending trend line. The level offered a short opportunity from 1.1670 to 1.1587 last week, so a bullish reclaim could open the door to higher levels next week.<\/p>\n
There\u2019s a single print at 1.1736 that\u2019s open for business, along with an unfinished auction at 1.1810. EURUSD may target both levels later this month, but I need to see more from euro bulls before I make that call.<\/p>\n
Weekly Forex Forecast For DXY, EURUSD, GBPUSD, USDCHF, and XAUUSD (August 25-29, 2025) 7 GBPUSD Forecast <\/p>\n
GBPUSD presented several reasons to get short on Monday, which is precisely what I did. As shared with VIP members in real time, I entered short at 1.3538 on Monday.<\/p>\n
I exited the short for a 122 pip profit, also shared with VIP members on Friday. Luckily, I exited my short position hours before Powell\u2019s comments.<\/p>\n
As for next week, if GBPUSD can reclaim levels like 1.3470 and 1.3525, it would reopen the door to 1.3580 resistance. Above that, we have several single prints in the 1.3700 region that could serve as magnets.<\/p>\n
However, buyers first have to deal with 1.3525 and the 1.3580 range highs. Key support comes in at 1.3470.<\/p>\n
Weekly Forex Forecast For DXY, EURUSD, GBPUSD, USDCHF, and XAUUSD (August 25-29, 2025) 8 USDCHF Forecast <\/p>\n
USDCHF tried to break out of a triangle pattern last week, but buyers retreated after Powell\u2019s comments. One issue with buying USDCHF at 0.8100 is the weekly resistance in the region.<\/p>\n
For next week, we have a failed (bullish) breakout to entertain, along with a break of the August lows at 0.8030. This combination could introduce fresh shorts on a retest next week.<\/p>\n
As for key support, we have the top of the May to July channel. It\u2019s difficult to say where the level may intersect with price, given that it\u2019s a descending level. However, it could be in the 0.7800 region, possibly even lower toward the 0.7720 multi-decade support.<\/p>\n
Weekly Forex Forecast For DXY, EURUSD, GBPUSD, USDCHF, and XAUUSD (August 25-29, 2025) 9 XAUUSD (Gold) Forecast <\/p>\n
XAUUSD remains range-bound, as it has since April. In Wednesday\u2019s mid-week outlook, I mentioned the breakout from the falling wedge, along with the $3,330 support area.<\/p>\n
Gold rallied on Friday after reaching just below $3,330. I didn\u2019t take the trade, as I would have preferred to see XAUUSD test the $3,305 imbalance first. <\/p>\n
As of now, it doesn\u2019t look like we\u2019ll get that, as gold approaches $3,385 resistance. A sustained break above next week would pave the way to a $3,420 retest. <\/p>\n
We saw gold come close to the $3,420 imbalance in early August, but the area remains open for business. <\/p>\n
Key support for XAUUSD flips to $3,350\/60 should this week close above that area.<\/p>\n
Weekly Forex Forecast For DXY, EURUSD, GBPUSD, USDCHF, and XAUUSD (August 25-29, 2025) 10 <\/p>\n","protected":false},"excerpt":{"rendered":"The forex market turned what was supposed to be a quiet Friday into a battlefield following Fed Chair…\n","protected":false},"author":2,"featured_media":88450,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,63,99,171],"class_list":{"0":"post-88449","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-markets"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/88449","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=88449"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/88449\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/88450"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=88449"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=88449"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=88449"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}