The dollar pushed to a new daily cycle high again today.
Monday was day 20 for the dollar’s daily cycle. The dollar is assured forming in a right translated cycle which means that our expectation is to see the next daily cycle print a higher daily cycle high.
The weekly dollar cycle is at week 18. It is quite likely that the next daily cycle will be a failed daily cycle that leads into an intermediate cycle decline.
And as the dollar keeps setting new daily cycle highs, we see gold setting lower lows as it seeks out its daily cycle low.
Gold is on day 24 for its daily cycle and as we just stated, printed a lower low. It looks like gold will continue lower until the dollar finally forms it swing high.
With the dollar being due for its daily cycle decline, that should allow gold to rally into a new daily cycle. However gold has breached its yearly cycle trend line indicating that gold has begun its yearly cycle decline. Therefore once gold begins a new daily cycle that rally should be brief. Gold should continue to print failed daily cycles as it seeks out it yearly cycle low. Since a cycle low is the lowest part following the cycle peak, we should see gold break below 1240.20 on its way to printing its yearly cycle low.