Gold Poised to Run Higher
|The dollar was rejected by the 50 day MA on Wednesday.
Wednesday's bearish reversal eased the parameters for forming a swing high. A swing high has formed overnight. This rejection by the 50 day MA should send the dollar into its daily cycle decline. A peak on day 9 can still result in a left translated failed daily cycle.
And the dollar rolling over has ignited a bullish response from gold.
Gold has held up well as the dollar rallied out of its daily cycle low. This morning we see that gold has formed a swing low off of Wednesday's bullish reversal and has delivered a trend line break. That signals that day 13 was a half cycle low. Gold's daily cycle has been averaging 27 - 33 days since emerging from its multi year low. And now that the dollar appears to be rolling over, gold is poised to run higher.
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