The dollar plunged on Tuesday forming a failed daily cycle. Wednesday saw the dollar print an inside day.
The dollar needs to break below 79.09 to continue descending into its daily cycle low. A break above Tuesday’s high of 79.57 could signal a new daily cycle. Based on the way gold reacted today it looks like the dollar may be ready to rally.
Gold delivered a warning today. With the dollar printing a failed daily cycle gold should be rallying. Instead it was rejected firmly by the 50 day MA and broke lower. This was a surprise. Surprises are normally delivered in alignment with the trend. Today’s surpise signals that gold’s trend is still lower. While gold could still recover, the close below the 200 day MA is another signal of gold trending lower.