Cycle Trading

In the Weekend Report we looked at how the dollar’s weekly cycle set-up has us expecting a left translated daily cycle formation. Today I want to point out some bearish dollar signals

First off I want to point out that the dollar has established a daily downtrend. It will remain in a downtrend until it can close above the upper daily cycle band.

Second, the True Strength Indicator has reached a level that has previously seen the dollar’s cycle roll over.

The next signal looks at the money flow. For this we need to switch to the ETF UUP

There has been a huge bearish money flow as the dollar is in the process of printing a lower high.

The was a similar huge bearish money flow the last time the dollar printed a lower high before its declining into its yearly cycle low.

And the dollar is in its timing band to seek out its yearly cycle low…