Cycle Trading

The dollar’s daily cycle may have just topped.

The dollar printed a new high over night. But has now reversed and is in the process of forming a bearish engulfing candle. Today is day 24 for the dollar’s daily cycle. The dollar is well into its timing band to print a daily cycle low. We will have to see how today goes, but so far this looks like the dollar has begun its daily cycle decline. At this late stage of the daily cycle, the dollar should only decline 4 – 6 days before printing a higher daily cycle low.

There is an interesting possibility developing on the weekly cycle.

The dollar printed an intermediate low in August. Despite the failed daily cycle in October, the dollar did not close below the lower weekly cycle band. So while this may be week 5, I believe that the correct weekly cycle count is week 12. Which means that once a daily cycle low prints, the new daily cycle will take the dollar into its timing band for an intermediate cycle low.

So a possible scenario is that once the dollar forms its daily cycle low, the next daily cycle could form as a left translated, failed daily cycle.

Which could provide the catalyst for gold to form its intermediate cycle low …