Cycle Trading

The dollar formed a swing low on Friday.

The dollar printed its lowest point on Wednesday, day 28, placing it in its timing band for a DCL. Friday’s swing low signals the 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 rallying into what appears to be a new daily cycle is acting like a wrecking ball in the other asset classes, which I discuss in the Weekend Report.