Cycle Trading

This is week 28 for the weekly gold cycle, placing gold in its timing band for an intermediate cycle decline.

Gold has formed weekly swing high this week. A break of the weekly trend line will confirm the intermediate cycle decline.

And what appears to be sending gold lower is the dollar.

The dollar printed a bullish engulfing candle on Thursday. At 19 days, that places the dollar in its timing band for a daily cycle low. And Thursday’s bullish reversal eases the parameters for forming a swing low. A break above 96.19 will form a swing low to signal a new daily cycle. The dollar had established a daily uptrend prior to its daily cycle decline. Therefore if the dollar forms a swing low above the lower daily cycle band it will remain in its daily uptrend trend and trigger a cycle band buy signal.