Consolidation today, opportunity tomorrow?

The last 24 hours have brought more consolidation than direction, but that's not necessarily a bad thing.

Across metals, buyers continue defending the gains achieved earlier this week, while the dollar remains stuck in a tug-of-war between support and resistance. What stands out is that bullish technical structures remain largely intact despite the recent pause. In other words: the market is resting, not necessarily reversing.

US Dollar Index (DX.F)

Looking at the daily chart, we can see that the dollar once again tested its key support zone and managed to trigger a small bounce. However - and this is the important part - it still remains below major resistance levels, meaning yesterday's assessment remains fully valid:

“(…) a closer look reveals something potentially important: a developing head and shoulders pattern.

At this stage, the formation remains unconfirmed. The confirmation trigger would be a daily close below the neckline, which in our case sits around the critical 99.18 level.

Adding to the bearish case, daily indicators continue to display active sell signals, suggesting sellers still hold the technical advantage.

What happens if bears manage to close the bullish gap and activate the pattern?

The projected minimum target points toward the 98.00 area in the coming sessions. That's why keeping a close eye on daily closes - and especially the 99.18 level - could be crucial for the next major move.(…)”

Platinum (PL.F)

Platinum has also entered consolidation mode.

The metal is currently trading between Monday's bullish gap (1719-1730) and the nearby 38.2% Fibonacci retracement level of the decline that started in mid-May.

The good news for bulls is that buy signals remain active, and as long as the market stays above 1719, a breakout higher appears to be only a matter of time.

If buyers manage to push through the top of the formation, the first upside target should be around 1928, based on the measured move projection from the consolidation.

Copper (HG.F)

Let's finish with a chart we haven't discussed for a while: copper.

From today's perspective, buyers have two important allies on their side - two bullish gaps. The first comes from June 12 (627.50-638.80) and the second from Monday (644.50-651.00).

On top of that, yesterday's session produced an invalidation of the earlier breakdown below the black rising support line, adding another technical point in favor of the bulls.

That said, the battle isn't over yet.

Today's price action shows that the market is still fighting around that black support line, making both the support area and Monday's bullish gap crucial zones to watch.

As long as the gap remains open, buyers have a realistic chance of continuing higher toward the major resistance cluster created by recent highs (671.60-669.80) and the bearish gap from May 14 (667.90-691.95), which is reinforced by a bearish engulfing pattern.

A close above that resistance zone would open the door for a test of last week's gap. Until then, daily closes remain the key piece of evidence.

Today’s takeaways

For Dollar (DX.F)

• Watch 99.18-99.85 because the market remains trapped between support and resistance.
• Daily close below 99.18 -> activates the head & shoulders pattern and opens the door toward 98.00.
• Break above 99.85 -> weakens the bearish case and shifts focus back toward 100.00+.
• No breakout or breakdown = expect more sideways action.

For Platinum (PL.F)

• Watch 1719-1824 because the metal remains locked inside consolidation.
• Hold above 1719 -> keeps buyers in control.
• Break above the upper border -> targets 1928.
• Daily close below 1719 -> weakens the bullish setup.

For Copper (HG.F)

• Watch 644.50-651.00 bullish gap because it remains the key support zone.
• Hold above the gap -> favors continuation toward 662-671.50 resistance zone.
• Daily close below the gap -> weakens the bullish case and shifts attention back to the next important support.