Dollar Soars as Commodities Split Into Winners and Losers

The US dollar continued its upward momentum today, pushing through resistance levels and setting its sights on further gains. After closing above the psychological barrier of $100 yesterday, the dollar broke through the 100.37 resistance level and is now targeting the next hurdle at 100.67-100.72.

If buyers can manage to break through this level as well, their next target would likely be the bearish gap at 100.67-100.72 from July 30. However, a daily close below 99.95-100 could undermine the current bullish setup and trigger a correction of the latest upswing.

Palladium, on the other hand, delivered on its bearish roadmap, with sellers reaching 1262 and pushing price below the consolidation discussed yesterday. This has opened the door for further declines toward 1235 or even 1226, but a daily close above 1346 would invalidate this bearish scenario.

Cocoa also played out according to plan, with both downside targets - 5344.75-5383.50 and 5253.95 - being delivered today. However, the recent counterattack suggests a possible reversal may be just around the corner, but buyers still need to close the bearish gap at 5663.50-5772 before this can be confirmed.