Chart of the Day - Friday, January 24, 2025

🏆 Today's Chart of the Day was shared by Chris Kimble (@KimbleCharting).
 

• The US Dollar Index ($DXY) dropped -1.8% this week, marking its worst week since November 2023. It rallied for 14 out of 15 weeks before pulling back over the last two weeks.
   
• Chris points out that $DXY has formed a Doji Star pattern at resistance. This bearish reversal pattern occurred at the 78.6% Fibonacci retracement of the 2022-2024 decline, around $110. 
   
• After tumbling this week, the dollar is testing support at $107. If $DXY breaks this potential support level, risk assets—including stocks, precious metals, and crypto—will likely benefit.

The Takeaway: The US Dollar ($DXY) had its worst week in over a year while creating a bearish reversal pattern at resistance. Risk assets will likely thrive if $DXY continues to break down.