Today’s session feels like a classic “proven” moment.

Between the dollar and the precious metals, several markets are pressing directly against major support and resistance zones, but none of them have delivered a decisive breakout… yet. And that makes today’s journal especially important.

The first thing that jumps off the daily chart is Friday’s fresh bearish wrap pattern. This is an important development as it adds more weight to the already strong resistance zone built around last Wednesday’s bearish divergence and the upper boundary of the orange consolidation.

Today’s Asian Summit begins. A small bullish gap between 97.82 and 97.87. This gap gave the bulls a reason to fight back after several failed attempts by the bears to break the key support zone.

And for a moment, it worked. The dollar climbed back above the 98 level, but the high road is still not clear.

Last week’s bearish gap between 98.20 and 98.31 remains active, and the bearish island reversal is still hanging over the chart like a ceiling. Together, these technological barriers continue to block the path north.

That’s why, in our view, Bulls still have a big job to do. They need to break out of the orange consolidation, close the day above 98.31, and neutralize the bearish setup overhead.

If they can clear that, the door opens to a move to the next major resistance zone between 98.75 and 99.68. Until that happens, the picture remains mixed and this is one of those situations where patience is likely to be more valuable than predictability.

Let’s begin this section with a quote from May 7:

“(…) If the bulls manage to finish the day above 8000 and successfully close the gap, they will have a strong technical argument for another push towards the lower limit of the previous channel.

(…) If buyers manage to reclaim this structure and break the resistance cluster, the next target could come into play very soon: the March 11 gap between 8850 and 8959. (…)

From today’s perspective we see it. Silver has followed a bullish script. almost exactly (and first – Congratulations to everyone who used this scenario to increase their profits!).

Yesterday, the bulls closed the day not only above the April 20 and March 13 gap zones, but also above the first broken low of the green rising channel. This move invalidated the earlier breakdown below the channel, which is a very positive technical signal.

This show of strength led to a rally in Asia, and the newly formed bullish gap encouraged another rise towards the final resistance zone before the psychologically important 9000 level.

As the chart shows, however, the combination of two Fibonacci retracements and the lower edge of the March 11 gap (8850-8959) slowed the rally and triggered a pullback, bringing the price back to the previously reclaimed lows of the ascending channel.

But for now, the big picture is constructive.

In our opinion, unless we see a daily close below this support line – and especially below 8526 – buyers still have a solid opportunity to launch another attack on the nearby resistance zone.

What will invalidate this bullish scenario?

Daily close below 8526. If this happens, the first downside target for the bears will likely be the 8000-8120 area.

Today’s takeaway and key levels to watch.

For dollars:

• See 98.20-98.31 bearish gap with island reversal overhead
• A daily close above 98.31 is likely to open room towards 98.75-99.68.
• Failure to break resistance -> Dollar trapped in consolidation.
• Continued weakness in the dollar could be supportive for metals.

For silver:

• See the reclaimed lower boundary of the green rising channel (key support).
• Resistance sits in the 8850-8959 zone.
• A successful breakout can pave the way towards the -> 9000 barrier.
• Daily close below 8526 -> opens downside risk towards 8000-8120.
• Silver looks like the strongest chart in the group.

Respect the levels, avoid the noise, and let the market come to you.