The start of a dollar rally?
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: