Dollar Weakness

0

The dollar broke decisively lower on Tuesday.

$$$ daily

The dollar closed below the lower daily cycle band on Tuesday. That re-afirms that the dollar is in a daily downtrend. It also signals that the dollar is in the grip of an intermediate cycle decline. Tuesday was day 15 for the dollar’s daily cycle. With the dollar’s daily cycle averaging 33 days, that suggests that the dollar could trend lower for another 3 to 4 weeks before printing its DCL.

$$$ Weekly

The rally out of the week 24 low was weak and did not allow us to be certain if the ICL printed. Then the dollar broke below the week 24 low in March. The rejection by the declining weekly trend line convinces me that week 24 hosted the ICL and the rally out of the March low was just a counter-trend rally. That would make this week 11 for the intermediate dollar cycle. Since this intermediate cycle has already failed, the way for the dollar is lower. Once the current daily cycle forms a low, there is enough time in the intermediate cycle to allow for one more failed daily cycle to usher in the intermediate cycle low.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s