Cycle Trading: Preponderance of Evidence

LikesMoney Independent Analyst

Monday we were looking for evidence that day 23 did host a daily cycle low.

Normally 23 days is too early to expect a daily cycle low.
Part of our rationale to consider day 23 as the DCL included:

* Swing Low off of support at the 200 day MA
* Closed above the 10 day MA
* Closed above the declining trend line.
* Delivered a bullish TSI Zero Line Crossover

Since then stocks managed to turn the 10 day MA higher. Stocks have also broke above the 50 day MA to close above the upper daily cycle band. Closing above the upper daily cycle band ends the daily downtrend and begins a new daily uptrend. It also convinces me that day 23 hosted an early DCL. And now that stocks have begun a new daily uptrend they should remain in its uptrend unless it closes below the lower daily cycle band.

Author

LikesMoney

Independent Analyst

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

EUR/USD bounces off lows, back to 1.1860

EUR/USD now manages to regain some balance, retesting the 1.1860-1.1870 band after bottoming out near 1.1830 following the US NFP data on Wednesday. The pair, in the meantime, remains on the defensive amid fresh upside traction surrounding the US Dollar.

GBP/USD rebounds to 1.3660, USD loses momentum

GBP/USD trades with decent gains in the 1.3660 region, regaining composure following the post-NFP knee-jerk toward the 1.3600 zone on Wednesday. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold stays bid, still below $5,100

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of humble gains in the US Dollar and 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.