Cycle Trading

The dollar formed a swing high on Tuesday.

The dollar printed its lowest point on 1/25. That was day 40, placing the dollar deep in its timing band for a DCL. The dollar formed a swing low, but did not close above the 10 MA until 2/05 to signal the new daily cycle. The dollar has since turned the 10 day MA higher and pierced the declining trend line providing more proof that day 40 hosted the DCL.

However, the dollar appears to have been rejected by the declining trend line as it formed a swing high on Monday and delivered more bearish follow through on Tuesday. A close below the 10 day MA will signal that the dollar is extending its intermediate cycle decline. Which should be good news for gold.

Gold formed a swing low on Friday, Then delivered bullish follow through on Tuesday by closing above the 10 day MA to indicate a new daily cycle. Gold should break above the declining trend line to confirm the new daily cycle. And a close back above the upper daily cycle band will resume the daily uptrend.