Cycle Trading

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The dollar printed another lower low on Tuesday, but has yet to breach the daily cycle trend line.

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As we discussed last night, our expectation is to see this daily cycle form in a left translated manner and fail. A break of the daily cycle trend line will confirm the daily cycle decline. And a break below 84.53 delivers a failed daily cycle. With the dollar being on day 9, that leaves up two to three more weeks for the dollar to print its cycle low. Which will likely be an intermediate cycle low.

A bearish trend line break on the dollar could be bullish for the Miners.

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After breaking through the declining trend line on day 1, the Miners have been consolidating the two month sell off. The lowest point since the day 1 peak was Thursday, which was day 12. A 12 day cycle low would be an outlier. Therefore, I would expect to see one more break lower, breaking below the day 12 low of 20.05 to print the daily cycle low. A break above the declining solid blue trend line would signal a new daily cycle. And with the Miners on week 22, likely a new intermediate cycle as well.