Cycle Trading: Dollar Rejected
|The dollar found support at the 200 day MA on Jan 31st and printed an early, 14 day, DCL.The dollar rallied out of that DCL to close above the upper daily cycle band, confirming a new daily cycle and indicating a new intermediate cycle.
However that dollar ran into resistance at the 97 level on Tuesday.
The dollar did print a new daily cycle high on Tuesday. But the dollar was rejected by the 97 level, a level that turned the dollar back in August and in October. This eases the parameters for forming a daily swing high. A break below 69.44 forms a daily swing high. A peak on day 8 would set up a potential left translated daily cycle formation. And with the dollar in its timing band for a yearly cycle low, a left translated daily cycle formation would align with the dollar completing its yearly cycle decline. In the Weekend Report I plan to detail what the dollar would need to do to complete its yearly cycle decline.
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