Follow Through

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The dollar broke out to a new daily cycle high on Wednesday and then delivered bullish follow through on Thursday.

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The bullish follow through on Thursday caused the dollar to close above the upper daily cycle band for the second straight day to establish a new daily uptrend. Closing above the upper daily cycle band also signals that the dollar left behind an intermediate cycle low in February.

Gold also delivered some follow through on Thursday.

gld daily

The daily gold cycle peaked on day 19. Gold broke breached the daily cycle trend line on Wednesday signaling that gold had begun the daily cycle decline. Gold delivered bearish follow through on Thursday by closing below the daily cycle trend line in a clear and convincing manner to confirm the daily cycle decline. The peak on day 19 indicates a right translated daily cycle formation. Since emerging from the 2015 yearly cycle low gold has averaged about 27 days per daily cycle. Therefore gold could trend lower for the next 5 or so days before printing a daily cycle low.

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