Cycle Trading

Thursday’s bullish reversal on the dollar was halted by the 80.60 resistance level.

The dollar has been unable to close above the 80.60 resistance level since November.
The last time the dollar tested this level it was soundly rejected.

Now Wednesday’s candle looks to have established the daily cycle trend line.
The dollar cannot enter its daily cycle decline until there is a breach of the daily cycle trend line.

The dollar’s rally has exerted pressure on gold to the point where gold looks like it will print another failed daily cycle.

A break below 1625.80 produces another failed daily cycle

At this point I would rather see gold produce another failed daily cycle to reset the cycle count.

Gold has yet to break above the declining intermediate cycle trend line to confirm a new intermediate cycle.
A break below the 1625.80 level will shift the intermediate cycle low out.
That will allow for a fresh set of daily cycles to break through the declining intermediate cycle trend line.