Cycle Trading

Day 3 saw the dollar right up against the declining intermediate cycle trend line.

In the overnight we see the dollar busting a move.

Gold printed a bullish reversal on the dollar weakness on Monday

In the overnight gold has already printed a higher high,
but has already reversed lower off that high.
A break below yesterday’s low will negate that swing low.

SIL formed a swing low off the low in the apex of the consolidation.

If SIL can breakout with the backdrop of the dollar rallying, that would be a very bullish signal.

SLW delivered a swing low and breakout off the low in the apex of the consolidation.

If SLW can deliver some follow through with the backdrop of the dollar rallying then this move may be for real.

I am still looking for the dollar to form a weekly swing low

Once the weekly swing low on the dollar is printed, then we hunt for the daily low on gold.

But for now we need to watch the dollar as it busts its move …