Friday wasn’t about finesse. It was about force.
We had strong moves, clean structures, and then the market did what it sometimes does best: it repriced aggressively, blew through short-term levels, and forced everyone to reassess context.
What actually changed? What didn’t? And… what matters now?
USD Index (DX.F): The Close Decides
Looking at the daily chart, we can summarize today’s price action in one simple sentence: another day - another bullish gap. As you can see, it gave bulls enough momentum to attack the very short-term key resistance zone, which we discussed in Friday’s Free Lab Note:
“(…) Monday’s gap has now become a critical technical zone:
- the lower boundary aligns with 38.2% Fibonacci
- the upper boundary sits just above 50% Fibonacci
- this entire area is further reinforced by resistance based on the December 24 low
This makes it a key decision zone that could define dollar behavior at the start of next week.
Will they break higher?
From a technical point of view, they have two consecutive pro-growth gaps and buy signals generated by daily indicators, which gives buyers a solid foundation to push higher.
That said - and this is the key - the daily close still decides everything.
Why?
Because this area will define the USD direction for the next several sessions.
If bulls win the close and manage to break through this cluster of resistance, it will confirm regained strength and open the door to reclaim previously lost levels. In other words, the path toward the Jan. 23 gap will open, giving them a chance to neutralize the bearish engulfing pattern and challenge the Jan. 20 gap.
However, if bulls fail here, we could see another very short-term squeeze and test of the recent green gaps.
What does this mean for metals?
Once again, the dollar’s strength acted as fuel for sellers in metals.
Let’s break down the damage and the real implications.
Gold (GC.F): → this section is reserved for Premium readers today.
If you want to see the full picture, today’s Premium version dives deeper - not just into what matters now on gold, but also how Friday’s price action affected the weekly and monthly context. That broader structure matters more than most people think. If you’re curious, you’re welcome to try Anna’s Trading Lab for 7 days for $0 and see it for yourself.
Lab Takeaway – What to Do Now
This is not a market for emotional decisions. Here’s the practical playbook:
USD: focus on the daily close. Momentum is back, but confirmation matters more than gaps.
Gold: (…)
Very short-term traders: respect volatility. Wait for structure before committing.
Swing & position traders: trend remains bullish, but entries must now come from patience.
Stay patient, respect the levels, and let the market show its hand.
Anna