Cycle Trading

The dollar formed a swing low on Thursday.

The dollar printed its lowest point on Wednesday, day 28, placing in its timing band for a DCL. Thursday’s swing low signals a new daily cycle. We will use a close above the converging 200 day MA and 10 day MA to label day 28 as the DCL. The dollar is currently in a daily downtrend. The dollar will remain in its daily downtrend unless it closes above the upper daily cycle band.

The dollar forming a swing low has caused other assets to form a swing high.

The Miners formed a swing high on Thursday.

Stocks formed a swing high on Wednesday and delivered bearish follow through on Thursday.

Any bullish follow through on the dollar should send the aforementioned to complete their daily cycle decline.