Cycle Trading

On Monday we observed that the dollar formed a swing low.

After coiling for 2 days the dollar delivered bullish follow through on Thursday. The dollar is in the process of closing above the 10 day MA so we will label day 50 as the DCL. The dollar should rally enough to turn the 10 day MA higher as it rallies out of its DCL. However, there is significant resistance that the dollar will need to work through, in the form of the 50 day MA and the 200 day MA. Currently the dollar is in a daily downtrend. The dollar will remain in its daily downtrend unless it closes. back above the upper daily cycle band.