Cycle Trading: The Dollar is About to Cross the Line

LikesMoney Independent Analyst

The dollar printed its lowest point on Thursday, day 36, placing it late in its timing band for a DCL. Friday’s swing low signals a new daily cycle.

The dollar needs to break above the declining daily cycle trend line to confirm the new daily cycle. And a bullish break above the declining trend line will likely send the Miners lower.

Monday was day 12 for the daily Miner cycle. So if the dollar delivers a bullish break of its declining trend line confirming its new daily cycle that will likely send the Miners lower. A break below the daily cycle trend line for the Miners will confirm the daily cycle decline. And with a peak on day 1 assures us of a left translated daily cycle formation.

Author

LikesMoney

Independent Analyst

Assets (such as stocks, gold, and the dollar) have identifiable cycles.

EUR/USD faces next resistance near 1.1930

EUR/USD continues to build on its recovery in the latter part of Wednesday’s session, with upside momentum accelerating as the pair retargets the key 1.1900 barrier amid a further loss of traction in the US Dollar. Attention now shifts squarely to the US data docket, with labour market figures and the always influential CPI releases due on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.