We discussed in the Weekend Report how the dollar was being squeezed by the 50 day MA and the 10 day MA. And which way the dollar broke would determine the translation of this daily cycle.
Today the dollar broke lower.
The dollar’s daily cycle peaked on day 8. A swing high formed on day 9 as the dollar was once again rejected by the 50 day MA. Losing the 10 day MA locks in a left translated nature to this daily cycle. The dollar is continuing its intermediate cycle decline. We should see the dollar break below the previous daily cycle low of 92.52 as the dollar seeks out its intermediate cycle low.
Oil responded with a big day today.
Oil surged for a 30% out of its cycle low. The declining 50 day MA halted oil and caused it to consolidate its recent gains. Oil gained over 4% today after finding support at the lower stem of consolidation. A break above the upper stem to the triangle consolidation should see oil break above the 50 day MA and go on to test the 200 day MA.