The dollar broke bullishly above the converging 50 day MA and 200 day MA on Tuesday.

Breaking above these 2 important moving averages on its first try initially looked like a display of relative strength. If the dollar can manage to close above the upper daily cycle band that will end the daily downtrend and begin a new daily uptrend. However the dollar is in the process of forming a rejection candle. The dollar is currently in a daily downtrend. If the dollar forms a swing high below the upper daily cycle band and closes back below the converging 50 day MA and 200 day MA that will indicate a continuation of its daily downtrend and signal a cycle and buy signal. I plan to discuss the longer term intermediate and yearly cycle implications in the Weekend Report.