LikesMoney
Independent Analyst
The dollar continued lower today, breaking below the August low. By breaking below the August low, the dollar has formed a failed yearly cycle.
The dollar has averaged a 36 month three year cycle for over the past 30 years. May is month 24 for the three year dollar cycle. That leaves about 10 months for the dollar to enter its timing band for its 3 year cycle low. That is enough time for one more yearly cycle.
May is month 9 for the current yearly cycle. I think that the dollar will print a yearly cycle low soon. In the Weekend Report I plan to discuss where the dollar is in its yearly cycle in relation to its 3 year cycle and also its 15 year super cycle. But suffice to say the way is down.
Stocks formed a swing low on Monday.
The daily equity cycle peaked on day 47. A swing high formed the following day, sending stocks into their daily cycle decline. Stocks printed its lowest point on Friday, closing below the upper daily cycle band. Friday was day 54, placing stocks deep in their timing band to print a daily cycle low. The swing low today very likely will mark the daily cycle low.
Stocks continue to close above the upper daily cycle band indicating that stocks are in a daily uptrend. Stocks will remain in the daily uptrend until they close below the lower daily cycle band.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.