Waiting on Confirmation

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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.

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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.
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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.

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