Cycle Trading

The dollar formed a bullish reversal on Monday.

The dollar printed its lowest point on Monday, day 26. That places the dollar in its timing band for a DCL. Monday’s bullish reversal ease the parameters for forming a swing low. A break above 103.74 will form a swing low. Then a close above the 10 MA will have us label day 26 as the DCL. The dollar is currently in a daily uptrend. If the dollar forms a swing low and close back above the 10 day MA — that will indicate a continuation of the daily uptrend and signal a cycle band buy signal. And a rallying dollar will likely pressure stocks and precious metals.