Cycle Trading

The dollar has been rallying out of the late December intermediate cycle low. With the dollar in its timing band for a yearly cycle low and three year cycle low, a new intermediate cycle has a good chance to also mark the yearly low and 3 year cycle low — until Tuesday.

On Tuesday the dollar formed a weekly swing high. A weekly swing high is required for an intermediate cycle decline. If the dollar goes on to close below the 10 week MA that will set the dollar up for a left translated weekly cycle — which has implications on the yearly cycle and the 3 year dollar cycle. All of which I plan to discuss in this week’s Weekend Report.

As as we discussed last night, a sinking dollar is like the rising tide that is lifting all boats