The dollar continues to demonstrate resilience as it searches for its daily cycle low.
The dollar printed its lowest point on Thursday, day 31 of its daily cycle, finding support near the 101.50 level. That places the dollar within its timing band for a DCL. A break above 101.88 would form a daily swing low. A swing low followed by a close above the 10 day MA would signal that the dollar has established its DCL.The dollar remains in a daily uptrend.
A rally out of the dollar’s DCL could provide an additional headwind for gold, which continues to decline. However, dollar strength does not guarantee gold weakness.
The developing relationship between the dollar and gold also has implications for their longer-term cycles. I discuss those implications in The Weekend Report.
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