Cycle Trading

Since the dramatic plunge last Thursday, the dollar has slowly recovered to where there is a swing high printed off the Friday low.

As you can see, the dollar plunged from Wednesday to Thursday last week, leaving behind a gap. The intra-day high for the buck today closed that gap.

We can see that the dollar closed its gap about 8AM EST.
As the dollar closed its gap this would have been a good time for the bears to do damage to gold’s bullish posture. —– But that did not happen.

Gold did get knocked down as the dollar rallied. But gold began to recover prior to the dollar fading.

So now we have gold coiling under the 1300 resistance level waiting on the dollar to break below the mini bear flag. Once the dollar breaks below the mini bear flag — we should see the 1300 level conquered. That should allow gold to form a right translated daily cycle as gold rallies into its daily cycle peak.