Cycle Trading

Wednesday’s CPI numbers indicated that inflation cooled more than expected,  causing the dollar to form a swing high.

While the dollar broke below the 50 day MA and the 10 day MA on Wednesday, it formed a bullish reversal off support from the 200 day MA and managed to close above the 10 day MA. I need to point out that the dollar closed above the upper daily cycle band on Tuesday, which ended the daily downtrend and began a new daily uptrend. So if the dollar goes on to form a swing low, that will indicate a continuation of its daily uptrend and signal a cycle band buy signal. A break above 105.32 will form a swing low.