Cycle trading: The weekend report preview

LikesMoney Independent Analyst

The dollar

After peaking on day 24, the dollar printed its lowest point on Thursday, day 29. That places the dollar in its timing band for a daily cycle low.

The high on day 24 assures us of a right translated daily cycle formation which gives us the expectation of the dollar printing a higher low. A break above Thursday’s high of 92.50 will form a daily swing low. Then a close back above the 200 day MA will indicate a new daily cycle. The dollar currently is in a daily uptrend. If the dollar forms a swing low above the lower daily cycle band then the dollar will remain in its daily uptrend and trigger a cycle band buy signal.

Stocks

Stocks got a bit stretched above the 10 day MA on Monday. Stocks consolidated Tuesday and Wednesday.

Stocks broke higher on Thursday and delivered bullish follow-through on Friday. The new high on day 25 assures us of a right translated daily cycle formation. Stocks are in a strong daily uptrend and will remain so unless they close back below the lower daily cycle band

The 10 day MA has crossed above the 3975 resistance level, so now the 10 day MA can be used as the stop.

Author

LikesMoney

Independent Analyst

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

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.