The dollar printed its lowest point last week on day 37, following the day 16 peak. While the dollar did form a daily swing low the next day, it did not confirm the new daily cycle — until today.
Thursday was day 5 for the dollar’s daily cycle. Closing above the declining trend line confirms the new daily cycle. In the Weekend Report I plan to discuss why the weekly cycle has us expecting a left translated daily cycle formation for this new dollar cycle. Left translated daily cycles normally peak by day 8. Therefore it is likely that the dollar will be turned lower at the declining 50 day MA
Gold has been displaying tremendous relative strength by rallying as the dollar emerged from its daily cycle low. And if day 28 was gold’s daily cycle low then we could see gold consolidate here and even print a half cycle low. This would allow the 10 day MA to catch up to price. Then when the dollar rolls over that should send gold on its next leg higher.