The dollar emerged from an intermediate cycle low in late October with the expectation for the first daily cycle to form as a right translated cycle. The daily cycle peaked on day 10 the dollar which means that the dollar needs to print a daily cycle low by day 20 in order to maintain a right translated nature to the this daily cycle.
A trend line break and a swing low printed on day 18 and looked in real time as a right translated daily cycle low. Following day 18, the dollar formed a swing low. After the two day pop higher the dollar began to decline in a descending triangle pattern that offers two different scenarios. If the dollar forms a swing low and breaks above the second declining trend line, then that will shift the odds in favor of the daily cycle low moving out to Friday. A break lower here signals that day 18 was the daily cycle low.
The weekly intermediate equity cycle continues to defy gravity.
This week was week 22 and the intermediate cycle set aother new weekly high. With the current daily cycle setting a new high at day 36, a right translated nature is a lock. Which means that at the conclusion of the current daily cycle we can expect another daily cycle that sets a higher high to unfold in the intermediate cycle. With allowing for the current daily cycle to seek out a low and 5 -6 six weeks of a new daily cycle, that will push the intermediate cycle out to around 30 weeks.
The daily gold cycle peaked on day 9, which was October 29th. Then declined for 20 days and printed the lowest point since the peak on Monday, November 25th. Gold formed a swing low on Tuesday.
Friday gold broke above the declining trend line to signal a new daily cycle. Of course we would like to see clear and convincing evidence in terms of bullish follow through to confirm a new daily cycle. The Money Flow Index turning up and the bullish crossover on the True Strength Indicator both support the notion of a new daily cycle.
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