The dollar has entered its timing band for a daily cycle low on Thrusday.
Today’s bearish reversal could mark the daily cycle peak. A break below 82.86 forms a swing high and a break below the daily cycle trend line confirms the daily cycle decline.
Often times gold trades inversely to the dollar. And if the dollar’s daily cycle is peaking that could explain the strength we saw in gold today.
Today’s bullish reversal on gold has eased the parameters for forming a swing low. A break above 1272.40 forms a swing low. And a break above the declining trend line confirms a new daily cycle.
And recently gold and stocks also went in different directions.
A new high on day 19 begins to shift the likelihood for the daily equity cycle forming in a right translated manner. A break below the 10 day moving average should see stocks decline into at least a half-cycle low.