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

According to Paul Ciana, technical strategist at BofA Global Research, the ICE Dollar Index (DXY), which measures the dollar against a basket of six major currencies, saw its 50-day simple moving average cross above its 200-day moving average late last week. This is known as a "golden cross" in technical analysis, a bullish signal. This encouraging development comes at the tail end of a lackluster year for the dollar. Since the beginning of 2025, the dollar index has fallen by about 9%. On Monday, the index fell 0.3% to 98.30, just slightly above its lowest level this year. Ciana noted that this is the 39th "golden cross" signal for the dollar since 1970. For investors looking for signs of a dollar rebound, this signal suggests the dollar may strengthen in the coming months. "Overall, the 'golden cross' signal has always been bullish for the dollar," Ciana stated in a written report. He pointed out that once a "golden cross" occurs, the dollar tends to rise within the following 20 to 60 trading days.