Chart of the Day - Friday, May 23, 2025

🏆  Today's Chart of the Day was shared by Sam Gatlin (@sam_gatlin). 
 

• After rising for four straight weeks, the U.S. Dollar Index ($DXY) dropped -1.9% this week, closing at its lowest levels since March 2022. 
   
• $DXY is on track for a four-month losing streak. It was up more than +2% at one point this month. However, it's currently down -0.5% with five trading days remaining in May. 
   
• Sam notes that the Dollar's recent bounce was nothing more than a Bear Flag within an ongoing downtrend that began earlier this year. If $DXY continues to trade below support at $100, the path of least resistance is lower. 
   

The Takeaway: The U.S. Dollar ($DXY) closed at a three-year low this week, as it resolves lower from a potential Bear Flag. If $DXY continues to trade below $100, the path of least resistance is lower.