Cycle Trading

We are still suspicious of the swing printed off the day 16 low.
As we have mentioned before, day 16 could possibly host a shortened 16 day, daily cycle low.

A break above the 80 level greatly increases the odds and a break of the declining trend line would confirms it.

So let’s take a look …

While the dollar rallied on Wednesday, it so far is retreating Thursday morning.

Until the dollar definitively breaks one way or another, this is just noise.
So if day 16 did not host a daily cycle low that would make Thursday day 19 and a final plunge into a low is looming.

Despite the dollar being up on Wednesday, commodities continue to further our framework of expectations …

… as does gold.

Notice how gold is coiling under that resistance level.
If the dollar does have one more plunge before printing a daily cycle low,
that will likely cause gold to break through this level as it rallies into a daily cycle peak.