Dollar Tests Key Resistance as Silver Mounts a Fightback

The US Dollar is pushing into fresh highs at the start of the week, but faces significant resistance ahead. The currency is approaching a key resistance zone, combining the upper boundary of a multi-week rising wedge and the 50% Fibonacci retracement of the decline between January 2025 and February 2026. This suggests a potential short-term correction unless the bulls can close above 102.50.

Silver, meanwhile, is showing signs of a fightback after last week’s weakness. The lower boundary of a declining channel continues to support prices, and a fresh bullish gap formed at 6041-6070 has attracted buyers. The bulls aim to close last week’s bearish gap and attack the next resistance area around 6500, but must hold above 6171 into the daily close.

Technical indicators are providing some support for the bullish case. The CCI and Stochastics have generated preliminary buy signals, while the weekly chart shows the previously broken long-term downtrend line holding as support. A break below 6000 and a daily close below 5988 would invalidate this scenario.

For the Dollar, the next upside target is the supply zone at 102.36-102.44, based on the 38.2% Fibonacci retracement of the 2022-2026 downward move and the 127.2% Fibonacci extension. The road north remains open, but the strengthening resistance zone suggests caution is warranted.