Wait For It

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The dollar printed its lowest point on Thursday, day 19 which places the dollar in its timing band for a daily cycle low. A swing low formed on Friday and today the dollar closed above the lower daily cycle band to signal a new daily cycle. A break above the declining trend line will confirm the new daily cycle.

1 $$$

Since the previous daily cycle failed, that means that the dollar has confirmed its intermediate cycle decline. Therefore we should see this daily cycle form as a left translated cycle, peaking on or before day 8 and then declining into another failed daily cycle. And since the previous 2 daily cycles were rejected by the 50 day MA, I expect that we will see the same thing again here.

3 gdx

The above chart illustrates the negative correlation that we currently see with the dollar and the Miners. As the dollar was dropping into this daily cycle low, the Miners rallied. Now that the dollar is rallying out of its daily cycle low, we see that the Miners closed below the upper daily cycle band today to confirm their daily cycle decline.

Since we expect the dollar to peak by day 8, then it is likely to see the Miners print a daily cycle low by then as well, forming a right translated cycle. Then has the dollar begins to decline into another failed daily cycle that should send the Miners higher.

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