Action — Reaction

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The dollar breached the 50 day MA and the upper daily cycle band on Wednesday providing confirmation of a new daily cycle. Today’s action of the dollar forming a swing high signals that the dollar’s daily cycle may have already topped.

1 $$$

The dollar’s swing high closed below both the upper daily cycle band and the 50 day MA. This is a signal that the dollar’s daily cycle topped on day 3. Gold certainly reacted as if the dollar’s daily cycle has topped.

2 gld

Gold’s reaction to the dollar forming a swing high was to close in a clear and convincing manner above the upper daily cycle band. This confirms that gold is in a daily uptrend and we should see gold go on to break above the previous daily cycle high of 1169.80.

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