Today Technical Analysis: Gold plummets 2% to $4,360 as the US dollar strengthens

Gold Technical Analysis

Gold has been facing renewed selling pressure that pushed prices below $4,400.

The bearish momentum is also supported by the alignment of the moving averages, where the short term MA5 remains below the MA10 and the longer-term MA20.

Moving forward, sellers maintain a clear structural advantage as long as the price trades below the critical MA10 and MA20 resistance levels around $4,408 to $4,425. If the current minor bounce fails to break this resistance zone, a retest of the immediate $4,366 support is highly anticipated.

Conversely, a sustained break above $4,425 on expanding volume would signal a potential trend reversal.

Gold 1H Chart

Source: STARTRADER app | Gold prices plummet as the US dollar strengthens

Brent Technical Analysis

Brent crude oil is trading near $97.51 after staging a strong rebound from the $94.52 low, signaling that buyers have regained short-term control.

The current retracement appears healthy as sellers have not yet produced strong downside candles and buyers continue defending higher lows. Price remains above key support levels around $97.10 and $96.60, keeping the overall recovery structure intact and suggests that traders are still favoring upside continuation.

The short term bias remains bullish as long as Brent stays above the $96.60 support zone. A successful break above $98.63 could trigger another strong upside move toward the psychological 100 level, followed by potential continuation toward 100.60. However, if sellers manage to push prices back below $96.60, the market could enter a deeper corrective phase targeting $95.90 and possibly the previous swing low at $94.52.

Brent 1H Chart

Source: STARTRADER app | Oil jumps 3% on renewed geopolitical escalations

Dow Jones Technical Analysis

Dow Jones is trading around 50,663 after failing to sustain bullish momentum above the 50,800 region. The moving averages also reflect weakening momentum, with price trading below the MA10 and MA20, while the short-term MA5 has started flattening.

The short-term bias remains neutral to bearish unless buyers regain momentum above key resistance. A breakdown below 50,560 could expose the index to further downside toward 50,400 and potentially the major support around 50,325. On the other hand, if buyers manage to push the market above 50,820 with stronger volume confirmation, momentum could improve significantly and open the door for a recovery toward 51,000 and eventually a retest of the 51,188 swing high.

Dow Jones 1H Chart

Source: STARTRADER app | US stocks retreat from their record highs

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.