Cycle Trading

The dollar had printed its lowest point last Friday, day 17. Since 8 of the previous 11 daily cycles stretched past 26 days the odds favored the dollar continuing lower.

However, the dollar rallied on Thursday.

The dollar broke higher on Thursday to close above both the declining trend line and the 10 day MA to confirm that Friday was the daily cycle low.

And this sent gold lower.

There was some uncertainty if day 17 was actually a shortened DCL. But gold breaking below the day 17 low indicates that Thursday was day 29 for the daily gold cycle. And a close below the lower daily cycle band confirms that gold has begun its daily cycle decline. At 29 days, this places gold in its timing band for a daily cycle low. But I suspect that gold will continue to trend lower as long as the dollar continues to rally out of its DCL.