Cycle Trading

The dollar’s daily cycle printed a 26 day daily cycle low last Thursday.

There is another scenario that we should keep in mind.
Should the dollar reverse higher and take out the day one peak, that would mean last Thursday’s low would need to be re-phased.
But since the day 26 low printed on the outer timing band for a low, it is quite likely the daily cycle low.

So today was day 5 of the new daily cycle.
It appears that the dollar is poised to break through the support level at 81.75.

A break below that level could see the dollar trend lower for the next 3 – 4 weeks into a daily cycle low.

A three to four week decline into an intermediate cycle low would be consistent with other intermediate cycle declines.

It is partially based on last Thursday being the dollar’s daily cycle low that has me thinking that gold began a new daily cycle as well which is currently at day 4.

If I am right that the dollar is about ready to roll over to the next 2 – 3 weeks, then gold is ready to go on a 2 – 3 week run.

Equities are also running into resistance.

But it seems that all eyes are on the Greek elections this weekend.
The markets may have taken a step forward today after major central banks pledged coordinated action if the results of Greek elections this weekend lead to turmoil in financial markets.

The Fed was conspicuous by its absence from the chorus of support.

Perhaps Ben was already hard at work …