Cycle Trading

Friday was day 2 for the new dollar daily cycle.

Day 29 was late enough in the timing band to have been a daily cycle low.
And in realtime it looked like it could have been.

We can now see that the dollar continued to drop and formed a swing low off the Wednesday print.

A clear and convincing trend line break occured confirming a new daily cycle.

Since the dollar broke above the day 30 intra-day high, it eliminated it as a possiblity of being a day 1.
The reason is that no dollar cycle was ever just 5 days and breaking above the intra-day high of day 30 would have meant the Wednesday marked a 5 day daily cycle.

A 35 day daily cycle, while an outlier, is acceptable.

The fact that the dollar retreated after piercing the 80.50 level suggests and a peak may have printed.
If this current daily cycle is going to form as left translated, then the dollar will need to roll over by day 8.

Stocks

Stocks are 14 days into a new daily and intermediate cycle.

Please notice that stocks were up that past three days even though the dollar was rallying out of a daily cycle low.

If the dollar does roll over hear, that can help equities break through the 1420 resistance level.

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