Cycle Trading: The weekend report preview

LikesMoney Independent Analyst

The Dollar

The dollar broke below the day 44 low on Friday.

Breaking below the previous daily cycle low forms a failed daily cycle and extends the intermediate cycle decline. Friday being only day 6 indicates that the dollar can trend lower for the next 3 to 6 weeks before printing its DCL. The dollar is in a daily downtrend and will remain so unless it can close back above the upper daily cycle band.

Stocks

Stocks closed below the 10 day MA on Tuesday to signal the daily cycle decline.

Stocks printed their lowest point on Tuesday, day 42 to place them in their timing band for a daily cycle low. Stocks formed a swing low on Wednesday and closed above the 10 day MA on Thursday so we will label day 42 as the DCL. Stocks then delivered bullish follow through on Friday to close at a new all time high.

Stocks are in a daily uptrend. Thursday’s swing low formed above the upper daily cycle band to signal that stocks remain in their daily uptrend and triggers a cycle band buy signal. The 4190 resistance level can now be used as the stop.

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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.