Cycle Trading

The dollar fell out of bed this morning.

Our framework of expectations has the dollar declining into a yearly cycle low. It seems that the dollar may have revealed its intentions this morning.

The dollar peaked on day 5. Peaking early in the daily cycle is an indication that it will form as a left translated, failed cycle. This morning the dollar broke below the daily cycle trend line in dramatic fashion. That confirms the dollar is declining into its daily cycle low. A break below 80.153 confirms a failed daily cycle and indicates an intermediate cycle decline.

The intermediate cycle peaked on week 2. This is the first intermediate cycle of the new yearly cycle. The dollar failed to form a right translated weekly cycle. Now we turn our attention to the October low 78.998. A break below that forms a failed weekly cycle and confirms the dollar’s slide into the yearly cycle low.