Momentum is building, but key breakouts still matter

Markets started the week with buyers showing more confidence across several asset classes.

While a few important technical barriers are now being tested, most of the bigger moves still depend on confirmed daily closes above or below key levels. Until those confirmations arrive, we're following price.                       

Dollar (DX.F)

The dollar got off to a strong start by closing Monday back above the previously broken lower boundary of the black rising channel, giving us an invalidation of the earlier breakdown.

That positive technical development carried into today's session, with the greenback climbing above the recent purple consolidation. This suggests buyers may now challenge the upper boundary of the red declining channel. A daily close above that resistance would open the door for a move toward the two bearish engulfing patterns and the upper boundary of the orange consolidation (101.21).

Adding to the bullish picture, daily indicators have generated fresh buy signals, giving buyers additional momentum. How high could the dollar climb? Based on the height of the purple consolidation, the next upside target is at least 101.57 over the coming days. 

Platinum (PL.F)

Despite today's rebound, platinum is still trading below both the lower boundary of the triangle and Friday's bearish price gap (1629.50-1642.50).

That means, until we see an invalidation of the earlier breakdown - a necessary condition to invalidate last week's bearish scenario - today's upswing should still be viewed as a technical retest of the previous breakdown, which could eventually lead to another downswing in the coming days.

Copper (HG.F)

Copper continues to show impressive strength. After yesterday's rally, buyers left behind a bullish engulfing pattern, giving them fresh momentum today and allowing the price to close Friday's bearish gap while challenging both the key resistance zone (637.25-649.35) and the upper boundary of the green rising channel.

What's next?

If buyers can finish today's session above 649.35, the odds of breaking out of the green channel increase significantly, opening the door toward the upside targets we discussed last week: 675.43 (161.8% Fibonacci extension) and potentially the 692-700 zone. 

Daily takeaways

Dollar (DX.F)

•             Watch the upper border of the red declining channel (first resistance)

•             Daily close above it -> opens the door toward the bearish engulfing patterns and 101.21.

•             Upside projection -> 101.57.

•             Failure to break resistance = expect another period of consolidation.
Platinum (PL.F)

•             Watch the lower boundary of the triangle and the bearish gap (1629.50-1642.50).

•             As long as price remains below them, today's rally should be treated as a technical retest.

•             Invalidation of the earlier breakdown is required before turning bullish again.

Copper (HG.F)

•             Watch 649.35.

•             Daily close above 649.35 strengthens the bullish breakout scenario.

•             Next upside targets remain 675.43 and potentially the 692-700 zone.

Stay patient, respect the levels, and let confirmation lead the way.