Dollar Breakout Sets Stage for Bullish Continuation

The US Dollar has finally broken out of its consolidation phase and is on the move. After several sessions of waiting, the market has decided to go bullish, with a daily close above 100 potentially opening the road toward 100.37, then 100.67-100.72.

In contrast, metals are trying to defend key support zones and rebuild momentum, while commodities remain trapped in consolidation, requiring patience from traders.

Palladium is below its broken lower boundary of the green rising channel, with a daily close above 1370-1381 needed for a stronger bullish improvement. Meanwhile, Copper has reached an important support area built around two technical elements: the 631.15-634.95 bullish gap from July 30 and the previously broken upper boundary of the red declining channel.

Cotton #2 broke below its consolidation zone on Monday, reaching its bearish target at 82.90, with today's price action producing a breakdown below the 50% Fibonacci retracement of the entire previous advance. The 81.85 area could now be the next battleground and potentially decide the direction of the next move.