Dollar ends tough year on a high note with "golden cross" signal hinting the bad times may be over:
A chart pattern suggests the U.S. dollar could get a short boost in early 2026.
The dollar had a tough 2025, but a recent technical sign hints it may recover soon.
Last week, the ICE U.S. Dollar Index (DXY), which compares the dollar to six other currencies, saw its 50-day moving average move above its 200-day moving average. This bullish sign is called a “golden cross,” according to Paul Ciana, a technical strategist at BofA Global Research.
This happened after a rough stretch for the dollar. The DXY has dropped about 9% since the start of 2025 and was near its lowest levels for the year, trading at 98.30 on Monday (down 0.3%).
Ciana says this is the 39th golden cross for the dollar since 1970. Historically, when a golden cross appears, the dollar often rises in the following weeks typically between 20 and 60 trading days.
The dollar fell this year against currencies like the euro for several reasons. Early in the year it was strong, but investor confidence dropped partly because of concerns about President Trump’s trade policies and how they could affect the U.S.’s global position. Also, expectations that the Federal Reserve might cut interest rates while other countries keep rates steady or raise them made the dollar less attractive. Investors usually move money to places with higher returns, and these expectations weighed on the greenback.
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