Friday was gold’s lowest point follow the day 11 peak. On Friday gold printed a bullish reversal that saw gold gain 3.28%. Today gold gave half of that gain back.
As bullish as Friday was, we are still waiting on confirmation of the new daily cycle. Gold still needs to break above 1179 to form a daily swing low, then a break above the declining trend line confirms a new daily cycle.
Meanwhile we are waiting on the dollar to enter an intermediate cycle decline.
Last week was week 26 and the dollar printed a new high. The dollar is overdue for an intermediate cycle decline so we are expecting to see a failed daily cycle from the dollar.
The current daily cycle peaked on day 17 making it quite likely that this daily cycle will form as a right translated cycle. So we will need to look to the next daily cycle to print a failed daily cycle.
Today saw the dollar form a daily swing high and breached the daily cycle trend line to signal the daily cycle decline. However the dollar went on to print a bullish reversal today. Monday was day 18 and the dollar has entered its timing band to print a daily cycle low. Technically speaking, the dollar has satisfied the requirements to print a daily cycle low. So a break to new highs would confirm a new daily cycle. And a new daily cycle should form in a left translated manner. Therefore the new daily cycle should peak by day 8 before rolling over into a failed daily cycle, signaling the intermediate cycle decline.