The start of a dollar rally?

Troy Bombardia
2020-08-20

The U.S. Dollar's decline pushed its sentiment to the lowest level in years. And with yesterday's rally in the dollar, this looks like it "could" be the start of a dollar reversal:

History suggests that reversals weren't that easy to predict without the benefit of 20/20/ hindsight. Historical cases in which the USD Index jumped more than 0.6% in a day, while its Optix the prior day was at 20 or lower, were not consistently bullish for the USD Index. The last historical case was a bullish one, but before that this occurred quite frequently during a major USD bear market:

In the meantime, this was a bearish sign for gold over the next 6 months: