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The USD Index just made its first “Golden Cross” in more than 1 year which is a short-medium term
bullish sign for the USD…Historically when that has happened the USD usually continued to go higher in the next 2-3 months.
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A Golden Cross is when the market’s 50 daily moving average crosses above its 200 daily moving average as illustrated above and, as you can see in the table below, when that happens the U.S. Dollar Index’s forward returns on a 2-3 month basis are mostly bullish.
Click here to download the file in Excel.
Conclusion
The U.S. Dollar will probably head a little higher in the next 2-3 months before topping. Remember the adage “strength begets more strength”.
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