Cycle Trading

After an extended decline, the dollar formed a swing low on Thursday to signal a new daily cycle.

The dollar printed its lowest point on Thursday, following the day 10 peak. At 49 days, that places the dollar deep in its timing band for a daily cycle low. The swing low signals a new daily cycle. A break above the declining trend line will confirm the new daily cycle.

Once a the new daily cycle is confirmed, there are bigger implications on the horizon …

June is month 13 for the yearly dollar cycle. Since the dollar’s yearly cycle has averaged 9.7 months since the 2008 15 year super cycle low, this places the dollar in its timing band for a yearly cycle low. So once a new daily cycle is confirmed, it will likely mean that the dollar is embarking on a new yearly cycle as well.