Cycle Trading

The dollar broke lower on Tuesday.

And with the dollar breaking lower, you would think that would be bullish for precious metals …

However the Miners closed lower on the day, closing below the 10 day MA. With a peak on day 2, this sets the Miners up for a left translated daily cycle formation. Perhaps the Miners are sniffing out a rally on the dollar.

Tuesday was day 27. That places the dollar in its timing band for a DCL. The dollar printed a bullish reversal for a second consecutive day. A break above 103.61 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 put more pressure on the Miners.