Dollar Index Tests 100.67 Gap as Metals Extend Losses
The dollar index presses into the 100.67-100.72 zone. Palladium, cocoa, and wheat hit bearish targets per VT Markets.
Key points
- Dollar index tests the 100.67-100.72 gap after closing above 100.
- Palladium hit 1262, and cocoa bottomed near 5253.95.
- Wheat broke below the 710-734 range, testing the 700-706 support.
The U.S. dollar index closed above 100, pressing into the 100.67 to 100.72 gap. This move occurred as palladium, cocoa, and wheat hit bearish targets. VT Markets reports these technical levels define current market direction.
A daily close above 100.72 would shift focus to the 100.90 level. The next resistance band sits between 101.30 and 101.58. A drop below 100 would trigger a correction toward 99.95.
Dollar Index Faces Critical Resistance
The index has already cleared the 100.37 level. Traders now watch the 100.67 to 100.72 zone closely. Breaking this gap requires strong buying pressure to sustain the rally.
If the Federal Reserve policy shifts, the dollar may fall. A close below 100 aligns with channel support. This area acts as a key defense line for sellers.
Metals and Crops Hit Targets
Palladium dropped to 1262, meeting the 1266 target. A close below 1266 points to 1235 and 1226. Sellers must hold this level to continue the decline.
Cocoa completed targets at 5344.75 and 5253.95. Recovery requires closing above the 5663.50 to 5772 gap. Wheat broke below the 710 to 734 range. The next support lies at the channel's lower boundary.
Supply Factors Influence Price Action
The World Platinum Investment Council projects a supply deficit. This could cause reversals above 1346. Cocoa stocks remain tight, keeping price swings wide. USDA reports may accelerate wheat bearish momentum.
