Cycle Trading

The dollar dropped on Monday.

Monday was day 29, placing the dollar in its timing band for a daily cycle low. The dollar should turn the 10 day MA lower in order to complete its daily cycle decline. We will be watching the rising 50 day MA for possible support for the DCL to form. The dollar is currently in a daily uptrend. But a close below the lower daily cycle band will ends its daily uptrend and begin a daily downtrend. A close below the lower daily cycle band will also signal the intermediate cycle decline — which I plan to address in the Weekend Report.

A quick look at the weekly chart shows us that the dollar has already formed a weekly swing high.