Today Technical Analysis: Gold Drops 2% as Dollar Rebounds Above 99, Pressuring Bullish Momentum

Gold Technical Analysis

Gold is attempting a recovery after a sharp drop to $4,636 at the market open, but the overall structure remains range bound. Price is currently trading below a key resistance zone near $4,720–$4,750, where previous breakdown occurred.

Short-term momentum has turned slightly bullish, with price reclaiming short-term moving averages. However, the presence of the moving average MA20 above price indic

ates that the broader structure is still neutral to slightly bearish.

Resistance lies at $4,750, while support remains at $4,635. A break above resistance would signal continuation toward $4,800, but rejection from current levels could lead to another range rotation or retest of support.

Gold 1H Chart

Dow Jones Technical Analysis

The Dow Jones has shifted into a short-term bearish correction after failing near the 48,300 resistance zone from last week. Price has formed lower highs and recently dropped toward 47,350 support, where a bounce is now occurring

Momentum is currently mixed. The recent bounce suggests buyers are defending support, but price remains below key moving averages, indicating that bearish pressure is still present in the short term

Support stands at 47,350, while resistance is around 47,800–48,000. If price fails to reclaim this resistance, the index may continue lower. However, holding above support could lead to a short-term recovery within the broader uptrend.

Dow Jones 1H Chart

Brent Technical Analysis

Oil has delivered a strong bullish impulsive move, breaking out sharply from the $96–$98 consolidation zone and rallying toward the $105.50 resistance area. This move confirms aggressive buying and a shift back into a short term bullish trend. The structure is now clearly defined by higher highs and higher lows.

Momentum remains bullish, with price trading above all key moving averages. However, the latest candles show loss of momentum near the highs. This suggests that buyers are starting to slow down after the strong rally.

Immediate resistance stands at $105.50, while support is now at $102–$103. As long as price holds above this support, the bullish structure remains intact. A break above $105.50 could extend gains further, but failure to hold above $102 may trigger a short term pullback after overextension.

Brent 1H Chart

AUTHOR

Ghassan Albohtori 

Financial Market Analyst - STARTRADER

Ghassan Albohtori is a financial market analyst with experience in macroeconomics, investing, and currency trading. He conducts in-depth market research covering fundamental and technical analysis of different instruments to find major changes in market trends. Mr. Ghassan's main focus is the effects of economic data on different asset classes and how this affects prices.

Risk Disclaimer: This material is provided for informational purposes only and does not constitute a recommendation or investment advice. Trading financial instruments on margin involves substantial risk and may not be appropriate for all investors.