Cycle Trading

The deal is done,cliff is averted.

And gold is on the verge of breaking out…

What does this mean for the dollar?

The dollar is either on day 8 or day 18 of its current daily cycle.

I tend to think day 8 is the accurate read, but will keep an open mind going forward.

Now that the deal is done let’s look at the buck.

Overnight the dollar broke below the cycle trend line confirming its decline into a daily cycle low.

Notice the agreement with the Schaff Trend Cycle.

On to the weekly Dollar

The weekly cycle sits at week 17.

If the daily cycle is at day 18, that leaves 1 to 2 weeks of the dollar trending (accelerating) lower.
If a day 8 count turns out to be accurate, then will should see up to another 4 weeks of the dollar trending lower.

So if the 8 day count is accurate, another four weeks should make this cycle a left translated cycle increasing the possibility of beaking below the previous weekly cycle low.

That is congruent with the view that the three year cycle has peaked.

The yearly cycle is on month 11, the three year cycle is on month 20.
Breaking below last February’s low would confirm that this is a failed yearly cycle heading towards the three year low.

You will notice that the monthly Schaff Trend Cycle is beginning to turn lower…

It seems that we may have avoided the fiscal cliff.

But by doing so appears to have shoved the dollar over the cliff …