Cycle Trading

The dollar formed a daily swing low on Thursday.

After Tuesday’s big drop the dollar looked as if it was entering a bloodbath phase, but instead the dollar delivered a bullish surprise on Wednesday. The dollar formed a bullish reversal on Wednesday follow by forming a swing low on Thursday – signaling a possible early DCL.

The monthly chart shows that Tuesday’s decline caused the dollar to tag the 10 month MA – which caused the dollar to rally on Wednesday and form a swing low on Thursday to signal an early DCL. A close above the 10 day MA would have us label day 16 as an early DCL.

But despite this dollar strength, the Miners have managed to rally.  

The Miners printed their lowest point on Friday, day 27, placing them in their timing band for a DCL. The Miners formed a swing low on Tuesday, closing above the 10 day MA. They delivered bullish follow through on Thursday by closing above the 50 day MA so we will label day 27 as the DCL.  The Miners are currently in a daily downtrend.  But a close above the upper daily cycle band will end their daily downtrend and begin a new daily uptrend.