Cycle Trading

The dollar is catching a bid this morning.

Wednesday is day 13 for the daily dollar cycle.

Although the dollar formed a swing high off the day 10 peak, the dollar will not enter its primary decline until there is a cycle trend line break.

I do think that a close below the 80 level would be a pretty good indicator that the final descent into a daily cycle low is at hand.

So with the dollar showing strength I would have thought gold would be taking it on the chin.

Not so …

We see gold is also up this morning.

In fact, gold has managed to form a swing low.
That makes today possibly day 3 of a new daily cycle.
A break of the declining cycle trend line would confirm a new daily cycle.

The Miners continue to be in a down trend.

But it appears that they may have formed a low on Tuesday.
A break above 425.50 forms a swing low.

This looks to be two shortened daily cycles back-to-back.

The thing to notice is this second shortened daily cycle formed a higher high and if yesterday was the low, then it also formed a higher low.

We will still need to see a declining trend line break before we can get too excited …