When we looked at the Miners on Monday we noted that they late in their timing band band for a daily cycle low and that the oscillators had started to diverge. The Miners appeared to be ready to begin their daily cycle decline. So with the dollar rallying on Tuesday the Miners demonstrated bullish resilience.

Chart

The dollar broke below the previous daily cycle low on last week on day 12, which is too early to expect a daily cycle low.  The dollar formed a swing low on Thursday and rallied again on Tuesday.    Since the dollar's daily cycle low can stretch to 26 - 30 days, Tuesday's rally may just be setting up the declining trend line for the dollar as it declines into the pending daily cycle low.

And I think that is what the Miners were sniffing out on Tuesday.

Chart

The Miners have been consolidating the since becoming stretched above the 10 day MA as a result of rallying strongly into the year’s end.  This allowed the 10 day MA to catch up to price.  And if the dollar does compete its daily cycle decline that should ignite the Miners to break bullishly out of consolidation.

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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD battles with 1.0800, lower lows still likely

Another batch of dismal German data alongside looming risk-off sent EUR/USD to a fresh multi-year low of 1.0784. Recovery unlikely in the current scenario.

EUR/USD News

AUD/USD nears 0.6661, an over one-decade low

Dovish RBA Minutes and coronavirus concerns of economic growth weighed on the Aussie. Westpac Leading Index coming up next.

AUD/USD News

Altcoins push hard not waiting for a Bitcoin reaction

The Altcoin market has only needed one business day to see prices rise sharply again. Bitcoin, still, has adopted the anchor function and for the moment is giving up the battle for the $10000.

Read more

Gold firmer, near $1,600/oz on coronavirus fears

Renewed fears around the Chinese coronavirus (COVID-19) have been supporting the demand for the safe haven metal in past hours, taking the ounce troy to levels just shy of the key $1,600 mark.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex Majors

Cryptocurrencies

Signatures