Cycle Trading

The dollar is delivering signals that the daily cycle decline has begun.

The dollar’s daily cycle peaked on day 7. A swing high formed on Wednesday, day 11 that also breached the daily cycle trend line. This was accompanied by a TSI Zero Line Crossover all of which signals that the daily cycle decline has begun. A peak on day 7 signals a left translated cycle formation. A left translated daily cycle typically results in a cycle failure that begins the intermediate cycle decline.

But as we discussed on Tuesday, I think something bigger is developing here for the dollar. I think that a failed daily cycle may also lead to the yearly cycle decline and the 3 year cycle decline. All of which I plan on covering in this week’s Weekend Report.

And all of this has not been lost on gold …

Gold printed another higher high on Wednesday, which was day 8. Gold is beginning to close above the upper daily cycle band indicating a daily uptrend. And with the dollar entering its daily cycle decline that should support gold going higher to form a right translated daily cycle.