Pre-Summary
In Developing Dollar Reversal, we noted that the Dollar was beginning to reverse from important resistance, but a Daily swing high had not yet formed. That changed today. The Dollar formed a Day 18 swing high, providing the first confirmed price signal that a larger-degree decline may be beginning. Is this the first domino?
On Sunday, we discussed a developing reversal in the Dollar. The Dollar had moved higher out of its Day 13 DCL and was testing an important resistance area. But there was one thing missing.The Dollar had not formed a Daily swing high. That changed today.
The Dollar broke below Monday’s low, forming a Day 18 Daily swing high. The larger context makes this development important.
The Dollar is testing its 200-week moving average while also approaching the 50-month moving average. And the Dollar remains in the timing band for its Yearly Cycle Low.
The Daily swing high does not confirm an Intermediate Cycle Low, a Yearly Cycle Low, or a larger-degree decline. But every larger decline has to begin somewhere. This is the first confirmed price signal that the Dollar may be beginning to turn.
Is this the first domino?
Cycle Alignment
Daily: Day 18 swing high formed as the Dollar reversed from resistance.
Weekly: Week 7 is testing the 200-week moving average.
Monthly: Month 9 is approaching the 50-month moving average while in YCL timing.
Cycle Alignment: The Daily reversal is the first confirmed price evidence supporting the possibility of a larger-degree Dollar turn.
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