Cycle Trading

The dollar broke below the day 21 low on Thursday to extend its daily cycle decline.

The dollar appears to have found support at the 200 day MA and is in the process of forming a bullish reversal. Thursday is day 24, placing the dollar in its timing band for a DCL. A swing low and close above the converging 10 day MA and 50 day MA will have us label day 24 as the DCL. And if the dollar forms its DCL today, that will be a higher low — indicating that the June DCL was also the ICL.

Stocks are in the process of forming a bearish candle. At day 27, stocks are nearing their timing band for a DCL. If the dollar does form its DCL, that could send stocks into their daily cycle decline.