Dollar Delivers Bearish Follow Through

June 3, 2024

The dollar closed below the 10 day MA on Thursday then formed a swing high on Friday. Although the dollar found support at the 200 day Ma on Friday, the dollar delivered bearish follow through on Monday.

The dollar was rejected by the declining 10 day MA on Monday and is in the process of breaking convincingly below the 200 day MA. The dollar is currently in a daily downtrend. A close below the 200 day MA will indicate a continuation of its daily downtrend and signal a cycle band sell signal. A break below the previous DCL of 103.97 will form a failed daily cycle.

2 responses to “Dollar Delivers Bearish Follow Through”

Hobbitlaw

June 4, 2024

Do you think a cycle failure here would indicate that the ICL is set?

Reply
1. likesmoneystudies
  
  June 4, 2024
  
  Hi Hobbitlaw,
  The dollar is on week 23, placing it in its timing band for the ICL. A cycle failure typically happens during the intermediate cycle decline. How I define the ICL being set is the confirmation of the new intermediate cycle. One indication of this would be a close above the upper daily cycle band. A close above the upper daily cycle band ends the daily downtrend and begins a new daily uptrend. A close above the upper daily cycle band also signals that the ICL has been set.
  By the way, there is a possibility that the Jobs number on Friday could trigger an early DCL …
  
  Reply

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