Cycle Trading

The dollar continued rallying out of a daily cycle low printed on 2/01/13.

We can see on the weekly chart that the dollar just needs a bit more strength to breach the declining (red) intermediate cycle trend line to confirm a new intermediate dollar cycle.

So what does that mean for the daily cycle?

The dollar would essentially have to reverse here in order to not breach the declining intermediate cycle trend line.
A break above the declining trend line would declare a new intermediate dollar cycle.

The first daily cycle of a new dollar intermediate cycle forms as a right translated cycle.
Which should see this current daily cycle peak past day 12.

Gold sold off on the rallying dollar.
Recall in the Weekend Report when we looked at gold we had gold in a triangle consolidation.

An upside break out of the consolidation would confirm day 16 as a daily cycle low.
That did not happen. Today saw gold fall out of consolidation.

If day 16 was a daily cycle low, then the expectation for gold would be to form a higher daily cycle high.
The downside break down means that this is a continuation of the daily cycle that began on January 4 making today day 26.

It looks like we need to wait for gold to put in a bottom.
And that bottom may be accompanied by a dollar swing high …