We discussed the dollar’s attempt to establish a new daily cycle and the importance of resistance at 102.50. — The dollar has now broken above that resistance.
The dollar signaled day 40 as its DCL and has followed through with a strong advance. Price reclaimed the 10 day MA on Tuesday and continued higher through Friday.
The advance has left the dollar stretched above the 10 day MA, raising the possibility of consolidation while the moving average catches up.The daily uptrend remains intact, with a close below the lower daily cycle band needed to signal a change in trend.
The breakout above 102.50 strengthens the bullish outlook. More importantly, the advance is beginning to have implications beyond the daily cycle. The developing weekly structure is becoming increasingly bullish, while the longer-term cycle is approaching a potentially significant turning point. I discuss these developments in greater detail in The Weekend Report.
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