The dollar closed at a new cycle high on Tuesday.
However, the dollar also formed a swing high. While a swing high does not necessitate a daily cycle peak, a decline cannot take place without a swing high. We will look for a break of the daily cycle trend line to confirm whether or not the dollar has entered its daily cycle decline.
It does seem that gold is sniffing out something because gold’s response to the new closing high for the dollar represents a change of nature.
Gold printed a bullish reversal on Friday. It formed a swing low Monday that closed convincingly above the 50 day MA.
Recently we have witnessed that any day of relative dollar strength sent gold lower. Now today when the dollar prints a new cycle high gold does not break lower. Instead gold delivers a clear and convincing break above the declining trend line to confirm today as day two for a new daily cycle.
Regardless if Friday was day 22 or day 37, in either case gold printed a right translated daily cycle. Therefore our expectation is to see gold print a higher daily cycle high which should see gold break above 1238.90, breaking the pattern of lower lows and lower highs.
The Miners printed a higher high today.
Tuesday was day 13 for the daily Miner cycle. And the Miners also are displaying a change of character by printing a new daily cycle high on a day when the dollar prints a new closing cycle high. This confirms that the Miners have broken the pattern of lower lows and lower highs.
And once the dollar begins its daily cycle decline, that should really add fuel to the fire …
For this week I will be running a special New Year’s Trial Subscription offer for the Weekend Report. Try the first month for just $10.00 USD. Then it is $90.00 USD for each 6 months thereafter.
The Weekend Report discusses Dollar, Stocks, Gold, Miners, The CRB Index, & Bonds in terms of daily, weekly and yearly cycles.
Also included in the Weekend Report is the Likesmoney CycleTracker.