Cycle Trading

On Monday we discussed that dollar has not confirmed a new daily cycle …

and that Thursday could possibly be the daily cycle low.

The dollar broke lower on Tuesday, extending the dollar’s daily cycle out to day 33. The dollar is deep in its timing band to print a daily cycle low and just 31 cents away from printing a failed daily cycle. With Wednesday being a Fed day and the jobs report on Friday it is likely that the dollar will print its daily cycle low this week.

Bonds appear to have printed their daily cycle low already …

Bonds printed their lowest point on Thursday, following the day 19 peak. Thursday was day 28 placing bonds late in their timing band for a daily cycle low. Bonds have since formed a daily swing low and closed above the 10 day MA on Tuesday. A clear and convincing break above the declining trend line will confirm that bonds are in a new daily cycle.