Bank of America: The US dollar may strengthen in the coming months.

[Bank of America: The Dollar May Strengthen in the Coming Months] According to Bank of America Global Research technical strategist Paul Ciana, late last week, the ICE Dollar Index (DXY), which measures the exchange rate of the dollar against a basket of six major currencies, showed a golden cross pattern where the 50-day simple moving average crossed above the 200-day moving average. This is known as a bullish signal in Technical Analysis. This encouraging development comes at the tail end of a year of sluggish performance for the US dollar. Since the beginning of 2025, the dollar index has cumulatively fallen by about 9%. On Monday, the index dropped by 0.3%, reporting at 98.30 points, just slightly above the lowest level of the year. Bank of America strategist Ciana pointed out that this is the 39th “golden cross pattern” signal for the dollar since 1970. For investors looking for signs of a dollar rebound, this signal suggests that the dollar may strengthen in the coming months. Ciana stated in a written report: “Overall, the 'golden cross pattern' signal has generally meant bullish for the dollar.” He pointed out that once a “golden cross pattern” appears, the dollar tends to rise in the following 20 to 60 trading days.