The US dollar has been bearish since creating a swing high back in Jan 13th, 2025. This bearish order flow has not changed since then. The weeks ahead will indicate if we will continue lower or otherwise as we enter the middle of the year.
This weekly forex forecast includes how I’m viewing the DXY, EURUSD, and GBPUSD this week.
US Dollar Index (DXY) Forecast
DXY Weekly Chart
The DXY maintained its bearish order flow this past week, after we came off 1W Fair Value Gap back in 12th May, 2025. We got a bullish close on the weekly chart retesting weekly bearish order block this past week.
This does not negate the bearish order flow established since January. We are still bearish on the Dollar Index as long as we keep getting lower lows on the weekly chart.
DXY Daily Chart
The DXY retraced back into the weekly order block this past week after taking out April 2025 lows the other week. Wednesday, 18th June left a 1D Fair Value Gap which is significant this coming week in my opinion.
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I would prefer to see this Daily FVG broken below for continued bearishness on DXY. Once the 1D FVG is broken below on a daily closing basis, the potential draw on liquidity is the previous weekly lows @ 97.602.
EURUSD Forecast
EURUSD Weekly Chart
The EURUSD has been bullish since the beginning of the year. The bullish order flow has NOT changed.
EURUSD recently came off a weekly fair value gap that provided support to continue the bullish order flow. We are still bullish on the EURUSD as long as DXY remains bearish [DXY is always used as a benchmark for XXXUSD or USDXXX pairs. When DXY is bearish, we expect XXXUSD pairs such as EURUSD to be bullish]. Always do DXY analysis first!
The potential draw on liquidity when EURUSD bullishness continues is an old weekly FVG as outlined below.
EURUSD Daily Chart
The EURUSD entered into a bullish 1D fair value gap this past week on Thursday. This 1D FVG offered support taking the market slightly higher. I anticipate further bullishness on the EURUSD daily chart as long as DXY offers bearishness.
The potential near term draw on liquidity is previous weekly highs @ 1.16317.
GBPUSD Forecast
GBPUSD Weekly Chart
The GBPUSD has this past week entered into a bullish 1W FVG. The bullish order flow established back in January still holds.
The potential weekly draw on liquidity is January 2022 highs @ 1.37489.
GBPUSD Daily Chart
The GBPUSD remains bullish. We came off the weekly FVG on Thursday, 19th June this past week. I remain bullish as long as we don’t get a weekly close below the weekly FVG.
The market also left a daily FVG open on Wednesday, 18th. This daily FVG is very significant! I would prefer to see the 1D FVG closed above on a daily closing basis for continued bullishness.
The potential near term draw on liquidity is previous weekly highs @ 1.36326 on the upside.
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