Dollar Tests Technical Levels as Oil Prices Remain High
The U.S. dollar is testing its defining technical levels as crude oil prices hold above $100 and the risk of a hawkish FOMC decision increases.
The DXY has broken below its 2026 uptrend, but the longer-term structure remains tilted to the upside. The key downside levels are at 98.50, 98, 97, and 95.50, with 95.50 being a crucial barrier between a structural breakdown of the 18-year uptrend and a potential continuation of the bullish structure.
Gold and silver are facing fundamental pressure from rising bond yields and hawkish Federal Reserve rate expectations, alongside technical risks of breakdowns below $4,230 and $61, respectively. A sustained hold above $4,230 for gold would redirect the bullish scenario toward $4,520 and $4,700, with $4,700 being a 50% Fibonacci retracement of the January-August decline.
The silver price is also holding above the $61 support zone, which acts as a defining barrier between bullish and bearish scenarios. A sustained breakout above $66 would strengthen the bullish recovery and expose the next Fibonacci resistance levels at $68, $69.70, and $71.40.