From MarketWatch:

The U.S. dollar’s performance against other major currencies is on track to see a “death cross” on the daily price charts. The ICE U.S. Dollar Index, which tracks the currency against a basket of six major rivals, is currently trading at around 102.16, down 0.1% on the day. This price action has put the index’s 50-day moving average on track to meet or slip below its 200-day moving average near 103.40, triggering a death cross.

Death crosses typically confirm downtrends already underway. Historical data shows that the dollar generally falls over the subsequent 1-, 3-, and 6-month periods following a death cross. However, some analysts express skepticism about the predictive power of the death cross. Brad Bechtel, global head of FX at Jefferies, downplays the indicator’s predictive power, calling it “relatively meaningless.” Ipek Ozkardeskaya, senior analyst at Swissquote Bank, believes there is still room for the U.S. dollar to rebound despite the death cross.



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