Setting the stage …

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The dollar continued crawling up the daily cycle trend line on Tuesday

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This is a continuation pattern, setting the stage for a break lower.
The dollar has signaled its intention to go lower when it decisively broke the rising cycle trend line.

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Now we are waiting for the dollar to break out of the mini bear flag.
A break below 81.17 prints a failed daily cycle and confirms its journey into its intermediate cycle low.

Gold looks to be waiting for the dollar to make its break.

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Gold is on day 3 of its new daily cycle.
The expectation is for this daily cycle to be right translated, printing a higher high.
Gold found itself testing the declining trend line on Tuesday.
Gold is still very early in the current daily cycle.
Once the dollar breaks lower gold should break up through the declining trend line

That’s when the fireworks should start …

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Happy Fourth of July

7 responses to “Setting the stage …”

  1. Jack Dog Avatar
    Jack Dog

    Likesmoney,

  2. Jack Dog Avatar
    Jack Dog

    Likesmoney,
    Trying again. Enjoy your fourth, thanks for all your efforts. When the $ turns everything else should be burning holes in the ceiling!!!!
    Jack Dog

  3. […] 216 Anticipating "fireworks" for gold also. Setting the stage […]

  4. hetet Avatar
    hetet

    Thank you for all your hard work.

  5. Mike Avatar
    Mike

    so what happens now? does the new USD cycle high change anything? I’d love to see the schaff indicator today to see if it’s buying this move

  6. Mike Avatar
    Mike

    is it at all possible we had a short 9day cycle for the USD since we have a swing low and trendline break?

    1. likesmoneystudies Avatar
      likesmoneystudies

      Mike, I hope to take a closer look at tonight.

      What concerns me is that surprises tend to go to the trend side and the dollar has surpsised us to the up side.

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