Cycle Trading

The dollar’s daily cycle peaked on Monday, day 11. The swing high that formed today makes it appear that the dollar is about to embark on its daily cycle decline.

The previous daily cycle formed as a right translated cycle. The expectation is to see this daily cycle go on to form a higher daily cycle high. However, if Monday remains as the cycle peak, then the dollar would have printed a lower high, which signals an intermediate cycle decline.

The dollar looks to be ready to roll over into an intermediate cycle decline. Bonds seem to be headed in a different direction as it emerges from its intermediate cycle low.

Bonds printed an intermediate cycle low on March 6th. The rally that followed peaked on day 18. This locked in a right translated nature to this daily cycle. Then a swing high formed and bonds began their daily cycle decline. Bonds printed their lowest point on Thursday, day 23, as it breached the 50 day MA. Bonds regained the 50 day MA on Friday. The swing low today broke above the declining trend line to confirm today as day 3 of a new daily cycle.