Cycle Trading: Uptrends & Downtrends

LikesMoney Independent Analyst

The Miners have been closing above the upper daily cycle band to signal that they are in a daily uptrend. They will continue in their uptrend until they close below the lower daily cycle band.

The Miners printed another higher high on Thursday. At 43 days the Miners are very late in their timing band to print a daily cycle low. The True Strength Indicator is beginning to rollover signaling that a daily cycle decline is imminent. The new high on day 43 assures us of a right translated daily cycle formation. Therefore once a decline into a daily cycle low begins, the decline should be brief and then we can expect the Miners to go on to break out to new highs.

And the dollar collapsing is, in part, driving the Miners higher.

The dollar has been closing below the lower daily cycle band, which indicates that the dollar is in a daily downtrend. The dollar will continue in its daily downtrend until it can close above the upper daily cycle band. With 7 of the previous 9 daily cycles stretching pass 30 days and Thursday being only day 25, there are good odds for the dollar to continue lower for the next 2 to 3 weeks before printing a final daily cycle low.

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.