The dollar formed a swing low on Monday.
Tuesday the dollar broke through the declining trend line.
Wednesday morning sees the dollar breaking above last Monday’s high of 80.14 confirming a new daily cycle.
We discussed yesterday that this could be the second daily cycle of a new intermediate cycle.
To confirm a new intermediate cycle the dollar would need to the following:
Form a weekly swing low by breaking above 80.42
Break above the declining intermediate cycle trend line.
Gold appears to be acting like the dollar is now in a new intermediate cycle.
Recall gold’s previous daily cycle as the dollar was rallying out of the previous daily cycle low, gold largely traded sideways days 10 – 18.
Gold did decline into a daily cycle low then, dropping only 50 points over a three day span.
Now, gold’s daily cycle appears to have peaked last Friday, day 7, the same day the dollar printed its daily cycle low.
Gold formed a swing high on Monday and broke below the cycle trend line on Tuesday.
Already gold is trending lower as opposed to the sideways consolidation we saw the last daily cycle.
If the dollar is in a new intermediate cycle, then gold s likely dropping into an intermediate cycle low.
Tuesday was day 9 for gold.
Since gold’s daily cycle runs from 18 to 25 days, that leaves another 9 to 15 days for gold to print a low.
The fact that there is so much time left in gold’s daily cycle, gold will likely form a left translated daily cycle.
Breaking below 1739 will mean a failed daily cycle, which Is the hallmark of an intermedaite cycle decline.
The Miner’s daily cycle peaked last week on day 3.
Like gold, the Miners formed a swing high on Monday.
Tuesday saw a big follow through to the downside.
With another 11 days left for the Miners to print a low, they too look to be headed for an intermediate cyce decline.
So gold has another 8 to 15 days and the Miners go sell off for another 11 days.
Circling back to the dollar, rallying another 8 to 15 days would take the dollar to days 10 to 17.
That would bring the dollar on the cusp of it’s next timing band for a daily cycle low.
I have to say that with Ben’s open ended QE that I would not have expected the dollar to surmount a new intermediate cycle rally.
However, that scenario is clearly in play.
We may actually see the dollar to rally just enough to confirm a new intermediate cycle and then Ben will fire up the presses …
Cycle Trading 
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