Cycle Trading

The dollar’s daily cycle peaked on day 10 and formed a swing high.
The dollar did not break below the daily cycle trend line to confirm a decline into its daily cycle low.

Instead it bounced back to challenge the day 10 peak
This morning saw the dollar higher but has currently given up those early gains.

If the dollar breaks below the accelerated (red) trend line that could signal that the dollar has entered its final decline into a daily cycle low.
The dollar would need to break below the daily cycle trend line (around 79.50) to confirm the cycle decline.

Meanwhile gold is doing its best to discourage our interest.

The low printed last Friday, 1/04, does hold the promise of being both a daily cycle and weekly cycle low.

So far after that dramatic reversal last Friday gold has done little to inspire confidence.

Gold did manage to print a daily swing low on Wednesday.
We still are waiting on a break of the declining cycle trend line to confirm a new daily cycle.

Stocks continue to consolidate the gains off the quick start to the new daily cycle.

The daily equity cycle stands at day 6.
Stocks may still need another day or two to allow the ten day moving average to catch up to price before making its next move.

Once the dollar breaks through that accelerated (red) trend line that should send gold and equities higher.