Dollar Stalls as Gold Breaks Out: Key Levels to Watch
The US dollar failed to break out of its consolidation zone on Monday, despite gold's successful breakout and silver pushing above its consolidation range. The dollar remains trapped between 99.42-100, with a bullish opening gap at 99.42-99.47 serving as the nearest support.
According to technical analysis, buyers need to push above 99.89 to close the day above the psychological 100 barrier. If successful, their next target would be the upper boundary of the red declining channel, potentially reaching the 100.50 area.
However, indicators are showing positive divergences, which could translate into fresh buy signals in the near future. On the other hand, if sellers manage to close today's bullish opening gap, the dollar could turn south and revisit the support zone discussed on Friday.