Dollar Downtrend

The dollar formed a swing high on Wednesday.

The status of the dollar’s daily cycle is not clear. The dollar printed its lowest point on day 30, placing it squarely in its timing band for a DCL. The dollar formed a swing low last Thursday. Then went on to close above both the declining trend line and the 10 day MA on Monday to signal a new daily cycle. The dollar should go on to turn the 10 day MA higher as it rallies out of its DCL. But instead the dollar formed a swing high on Wednesday. What is clear is that the dollar is currently in a daily downtrend. Forming a swing high below the lower daily cycle band indicates a continuation of the daily downtrend and signals a cycle band sell signal.

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2 thoughts on “Dollar Downtrend

  1. Maybe it is NYSE with strongl double-bearish divergence with McLellan’s oscil + late DC for stocks + poor advance of alcoins vs btc and eth that cast a short-term pessimistic glimpse.
    Maybe tomorrow Dow Jones renders a bearish b/o by rising abv the Aug top (while spx touches its 200dma) to confirm the new IC after which the short term pessimism will unleash, making the dollar to rise for a few sessions too (into FOMC on 14Dec the latest).

    What do you think?

    • The dollar has formed a monthly swing high and is in the process of seeking out its yearly cycle low.
      The dollar should break below the 10 month MA and turn it lower in order to complete its yearly cycle decline.

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