In recent dollar posts, we discussed the bearish reversal following the day 25 peak and the subsequent decline toward a potential daily cycle low.
The peak on day 25 indicates a right-translated daily cycle formation. The dollar printed its lowest point on Thursday, day 31, placing it within its timing band for a DCL. On Monday, the dollar formed a swing low and is challenging the 10 day MA. The dollar remains in a daily uptrend. A close back above the 10 day MA would indicate a continuation of its daily uptrend and signal a cycle band buy signal — allowing us to label day 31 as the DCL.
The next daily cycle could provide important evidence about the dollar’s larger cycle direction. The developing implications for the intermediate cycle, including the relationship between the dollar and gold, will be discussed in The Weekend Report.
Leave a Reply