Cycle Trading

At 28 days into the daily cycle and still setting new highs, it is time for a daily cycle decline.

The dollar poked through the 83 level today and then reversed into the close.
That may have been the last push higher before rolling over.
A break below 82.42 forms a swing high which should lead to the daily cycle decline.
Still, we need to see a break of the daily cycle trend line to confirm that the dollar has entered into its primary decline.

Needless to say, this cycle will form as a right translated cycle meaning the expectation is for the next daily cycle to print a higher high.

As the dollar sold off we saw gold respond.

Thursday was day 15 for the daily gold cycle.
Gold is three days shy of entering its timing band for a daily cycle decline.

Should gold break below the trend line drawn off of today’s reversal, then the odds would be good that gold has entered its daily cycle decline.

But if the dollar (finally) rolls over, that could send gold above the 1619.60 level locking in a right translated daily cycle.

So we need watch the dollar and wait in anticipation …