Cycle Trading

Both the Miners and gold appeared to have printed bullish reversals today. We will need to see if they form swing lows on Friday to confirm a reversal.

Thursday also saw bonds break the pattern of lower highs.

At 20 days along with today’s candle sitting outside of the Bollinger Band, bonds are probably ready to begin their daily cycle decline.
But as you can see in the chart below, this is the 4th week of a new intermediate cycle in what is likely a new yearly cycle.

The break above the previous daily cycle high also (finally) formed a weekly swing low and broke above the declining trend line confirming a new intermediate cycle.

The dollar printed a reversal on Thursday.

The dollar broke out to a new cycle high before reversing sharply and closing near the lows of the day which is the lowest close in the past 7 days. A little more weakness will form a swing high.

The EURO also printed a sharp reversal today.

A swing low cannot form today because the EURO printed a lower low.
But the reversal higher had the EURO break above the declining cycle trend line all but confirming a new daily cycle. All that is needed is a swing low to officially declare a new daily cycle

And with the intermediate EURO cycle at week 20, a new daily cycle will likely mean a new intermediate cycle as well.

And a new intermediate EURO cycle means a dollar slide …