The dollar printed a reversal last Thursday, which was day 24. Being in the timing band for a daily cycle low, the dollar had good odds that the reversal marked the daily cycle low. We needed to see some follow through before the dollar could confirm a new daily cycle.
The dollar delivered that bullish follow through today.
The dollar broke above the declining trend line today in a clear and convincing manner to confirm that last Thursday did print a daily cycle low.
Gold also delivered some follow through today.
The daily gold cycle peaked peaked on day 9, where it was rejected by the 200 day MA. Gold lost the 50 day MA on Monday and delivered more bearish follow through today. Now at day 12, gold should start to feel the gravitational pull of the impending daily cycle low. A break below 1162.10 forms a failed daily cycle, continuing the intermediate cycle decline that we discussed here yesterday.