Technical Signs Point to Possible Trend Reversal for US Dollar and Gold

The US dollar index hit a high of 107 on Tuesday but has declined for 3 straight days since.

In technical analysis, a "doji" candlestick often signals a trend reversal. The doji on Tuesday indicates the dollar's rally may be ending.

Gold futures have started to respond, gaining over $13 today. This could confirm a key reversal for gold based on technical patterns.

Both Eastern (8-10 new lows) and Western (DeMark's 9) technical indicators show gold was oversold before this bounce.

If dollar weakness continues, it could lead to further gains for gold after its recent declines.