Dollar Strength

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The dollar showed strength on Thursday by printing a bullish reversal.

1 $$$ daily

The dollar printed its lowest point on Thursday, which was day 23. That places the dollar in its timing band for a daily cycle low. The bullish reversal into the close has eased the parameters for forming a daily swing low. A break above 101.15 will form a daily swing low. Then break of the declining trend line will confirm a new daily cycle. The dollar is in a daily uptrend. It will remain in its daily uptrend unless it closes below the lower daily cycle band.

I believe that this is week 16 for the intermediate dollar cycle. Therefore the next daily cycle should bring the the dollar into its timing band for an intermediate cycle low. Therefore we expect the next daily cycle to form as a left translated, failed daily cycle, which should be good for gold.

gld daily

Gold is currently in a very stretched daily cycle. Gold printed its lowest point on Monday, day 40, which makes gold overdue for a daily cycle low. Gold still needs to form a daily swing low and deliver a declining trend line break to confirm the it is in a new daily cycle, which may not happen until the impending new dollar daily cycle rolls over. But once that happens, then gold should emerge from its yearly cycle low.

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