Cycle Trading

The dollar formed a daily swing high on Monday.

Monday was day 22 for the dollar’s daily cycle, which places it in its timing band for a daily cycle decline. A close below the 10 day MA will signal the daily cycle decline. The dollar should then break below the daily cycle trend line as it seeks out its DCL.

But there is something potentially bigger going on with the dollar.

The dollar closed above the 10 week MA two weeks ago then delivered bullish follow through last week to confirm a new intermediate cycle. But if the dollar can form a weekly swing high and close back below the 10 week MA, that would potentially set the dollar up for a left translated weekly cycle formation. Left translated weekly cycle formation would likely extend the yearly cycle decline and the 3 year cycle decline, which I plan to further discuss in the Weekend Report. And as we discussed back on November 17th,

A sinking dollar is like the rising tide that is lifting all boats