Cycle Trading

The dollar found support at the 50 day MA on Tuesday.

The dollar printed its lowest point on Tuesday, day 42, placing placing the dollar very deep in its timing band for a DCL.  Wednesday’s swing low and close above the 10 day MA signals the new daily cycle. Notice that the RSI 05 pattern is changing – which indicates that the dollar is beginning the declining phase of its intermediate cycle. That aligns with the dollar being in a daily downtrend.  The dollar will remain in its daily downtrend unless it closes back above the upper daily cycle band.

Stocks

The rally out of the day 60 DCL had stocks close back above the lower trend line of the megaphone pattern.

Stocks spent the past week consolidating above the lower trend line.

This consolidation is allowing the 10 day MA to catch up to price. The weekly cycle indicates that this should be the 1st daily cycle of the new intermediate cycle. If so, then this daily cycle should break above the 50 day MA to form as a right translated daily cycle.  

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