Bank of America Global Research flags a scope for a death cross on the USD Index 'DXY' to occur in the coming weeks.
"The May/June USD decline has pulled two popular simple moving averages (SMA) close to a bearish signal often called a death cross," BofA notes.
"The 50 day SMA is falling fast toward the 200d SMA, which is falling slightly. Here is what history suggests should the 50d cross below the 200d in the coming days. Considering all 26 signals since 1980, the DXY is lower 18 times 5 days later and 16 times 10 days later. Thereafter the signal is inconclusive (Table 4). When the 200d is also declining, like it is now, a bearish trend developed 7 out of 9 times," BofA adds.