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Tuesday we looked at the evidence that the dollar left behind an early intermediate cycle low. We said that the dollar needed to close above the upper weekly cycle band as confirmation of a new intermediate cycle. But that does not look likely with the dollar declining into a daily cycle low

1 $$$ daily

Thursday was day 20 for the dollar’s daily cycle. The buck formed a swing high today, lost the 50 day MA and closed below the upper daily cycle band. All of this signals the daily cycle decline. The dollar still needs to break below the daily cycle trend line to complete its move into a daily cycle low.

2 $$$ weekly

And with the dollar still needing to complete its daily cycle decline, there leaves little doubt that the buck will close below the upper weekly cycle band. This indicates a continuation of the intermediate decline. The dollar will need to break below the week 15 low of 97.21 before completing its intermediate decline.

And the dollar declining into an intermediate low is delivering nice pin action with gold.

3 gold

Gold has been crawling along the day 10 MA since mid November. Gold managed to close above the declining trend line on Tuesday. Gold then closed above both the upper daily cycle band and the 50 day MA on Wednesday. The bullish follow through today leaves little doubt that gold has left behind on 12/03. In the Weekend Report we will look to see what this means for gold’s intermediate and yearly cycles.

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