Cycle Trading: Gravitational Pull of Impending Daily Cycle Decline

LikesMoney Independent Analyst

Stocks formed a swing high on Monday, perhaps feeling the gravitational pull of the impending daily cycle decline.

Monday was day 27 for the daily equity cycle. Which places stocks 3 days shy of their timing band for a daily cycle low. The swing high this late in the daily cycle signals that stocks are beginning their daily cycle decline. Stocks will need to break below the daily cycle trend line in order to confirm the daily cycle decline.

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LikesMoney

Independent Analyst

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

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints 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.