Dollar Strength

The dollar broke convincingly higher on Thursday.

The new high on day 9 begins to shift the odds for a right translated daily cycle formation. The dollar also closed convincingly above the upper daily cycle band on Thursday. That confirms that the dollar has resumed its daily uptrend. The dollar will remain in its daily uptrend unless it closes below the lower daily cycle band.

Meanwhile, the Miners closed convincingly lower on Thursday.

Thursday was day 18 for the daly Miner cycle, which places the Miners in their timing band for a daily cycle low. Since cycles often balance themselves out, that suggests that the Miners could be forming a daily cycle low at any day. The 190 million Buying on Weakness on Thursday would align with a daily cycle low forming soon.

But if a daily cycle low does form soon, the weekly set up suggests that the trend is still lower.

This is week 15 for the intermediate Miner cycle, which places the Miners 3 weeks shy of their timing band for an intermediate cycle low. Since that timing band can stretch for 8 plus weeks, that leaves plenty of time for one more failed daily cycle to form before the intermediate cycle low finally forms.

So a possible scenario is for the dollar to consolidate or even form a a half cycle low after Thursday’s big rally. Which could be enough to allow the miners to rally and confirm a new daily cycle. Then when the dollar resumes its upward trend that would cause the daily Miner cycle to form as a left translated cycle formation and complete its intermediate cycle decline.

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