Cycle Trading

There is an epic battle being waged right now.

The dollar’s intermediate cycle lasts 22 weeks or less 84% of the time.

(Between 1992 – 2008, 37 of the 44 intermediate cycles lasted 22 weeks or less.)

The current weekly cycle printed a low on week 19.
The dollar is now in the third week of the rally out of that low.

So timing-wise the dollar wants to rally, but Ben appears to have put a lid on the dollar.

The dollar did form a swing high on Tuesday.

However, the dollar rallied once it tagged the daily cycle trend line.
The 79.50 level also appears to be emerging as a support level.

Maybe the dollar is waiting for the monthly jobs number on Friday before making a decisive break.

Once that break is made, we will then know which way to ride this.