Cycle Trading

The Dollar printed a swing high on Thursday.

The dollar printed a new high on Wednesday, day 20, locking in a right translated daily cycle formation. With the dollar is in it timing band to seek a daily cycle low, Thursday’s swing high and trend line break should send the dollar into its daily cycle decline. The right translated cycle formation suggests a 4 – 8 day decline into a daily cycle low.

The dollar declining into its daily cycle low should help gold form its daily cycle low.

Gold printed its lowest point on Tuesday following the day 6 peak. Tuesday was day 26, placing gold in its timing band for a daily cycle low. Gold did form a swing low on Wednesday. A close above the lower daily cycle band will signal a new daily cycle. A break of the declining trend line confirms the new daily cycle.

Gold is in its timing band for an intermediate cycle low. The potential exists for a new daily cycle to also signal a new intermediate cycle. But an expected brief dollar decline could see gold form one more left translated failed daily cycle before the intermediate cycle low is set.