Eseandre Mordi
⬤ The USD staged a notable reversal after hitting lows last week, marking what could be a turning point in the broader currency trend. The dollar index has stabilized and rebounded following an extended decline, with price action beginning to climb from its recent base. The reversal happened right as media outlets started framing the dollar as a growing concern—classic contrarian timing that often signals potential bottoms.
⬤ The chart shows the USD trending lower throughout much of the past year, staying below key moving averages with momentum indicators pointing down. Recently though, price action shifted as the dollar bounced from the lower end of its range. Momentum measures below the price chart have started improving, suggesting downside pressure has eased and a countertrend move may be developing.
⬤ This USD direction change matters for precious metals traders. Dollar weakness has traditionally supported gold and silver prices, while USD strength acts as a constraint. The chart-based reversal shows how sentiment around the dollar shifted right at the lows—exactly the kind of extreme reading that often marks inflection points in major currency trends.
⬤ The USD plays a central role shaping conditions across global markets, especially precious metals. A sustained dollar rebound could influence short-term trend expectations and alter cross-asset dynamics. With the USD now attempting to turn higher from a well-defined low, market focus will likely stay on whether this move evolves into a broader recovery—an outcome that could reshape the balance between currency strength and precious metal performance in the weeks ahead.
Eseandre Mordi
