According to Paul Ciana, technical strategist at BofA Global Research, late last week the ICE Dollar Index (DXY), which measures the dollar against a basket of six major currencies, moved above its 50-day simple moving average to cross the 200-day moving average, a bullish signal known in technical analysis as the "golden cross."
The encouraging development comes at the end of a year in which the dollar index has lost about 9 per cent of its value since the start of 2025. On Monday, it fell 0.3 per cent to 98.30, just above its lowest level for the year.
According to Ciana, strategist at BofA, this is the 39th "golden cross" signal for the dollar since 1970, and for investors looking for signs of a dollar rally, it suggests the greenback could strengthen in the coming months.
"Overall, the'gold fork 'signal has been positive for the dollar," Ciana said in a written note, noting that once a "gold fork" occurs, the dollar tends to rise over the next 20 to 60 trading days.
Bank of America: Dollar may strengthen in the coming months
2025-12-23 06:32:45
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