Chart of the Day - Monday, July 21, 2025

🏆 Today's Chart of the Day was shared by David Rath (@DJwrath). 
 

• The US Dollar index ($DXY) saw a steady rebound in the first two weeks of July after closing at a three-year low last month. However, the bounce has started to fizzle as the broader downtrend resumes. 
   
• David points out that the buck faded at its 50-day moving average yet again. $DXY has been rejected here several times since breaking lower from a multi-year range two months ago.
   
• It couldn't even retest former support at $100 during the recent bounce. A weaker dollar has become the consensus trade, but with the downtrend resuming, $DXY is eyeing fresh multi-year lows in the near term. 
   

The Takeaway: Despite an orderly rally in the first two weeks of July, the US Dollar Index ($DXY) is poised for fresh multi-year lows following another rejection at its 50-day moving average.