Dollar Breakout Validates Bullish Scenario, but Confirmation Still Matters

The US dollar experienced a significant breakout on July 24th, closing above the upper boundary of its consolidation at 101.21. This technical advantage has been validated by two invalidated bearish engulfing patterns.

As long as the dollar continues to close above this level, yesterday's bullish breakout remains valid, with upside targets remaining in play for 102.00-102.10 and 102.41-102.50.

Palladium, on the other hand, has been bearish, dropping below the lower boundary of its green ascending channel. Today's price action has confirmed this breakdown, with sellers firmly in control. A daily close above the broken channel would be the first sign that bearish momentum is fading.