Cycle Trading: Weekend report preview

LikesMoney Independent Analyst

The Dollar

The dollar printed its lowest point on day 27 to place it in its timing band for a DCL.

The dollar formed a swing low on Wednesday. Then delivered bullish follow through on Thursday by closing convincingly above the declining trend line to confirm the new daily cycle. The dollar is in a daily downtrend. It will remain in its daily downtrend unless it can close above the upper daily cycle band.

Stocks

Stocks formed a swing low on Friday off of support from the 10 day MA.

Stocks got a bit stretched above the 10 day MA on Monday. Stocks formed a swing high on Wednesday and broke lower on Thursday, where they found support at the 10 day MA. Stocks formed a swing low on Friday, therefore we will construct the daily cycle trend line. The expectation for the first daily cycle of a new intermediate cycle is to see the cycle right translate. Stocks should break above the day 12 high and peak after day 20. Stocks are in a new daily uptrend. They will remain in their daily uptrend unless they close below the lower daily cycle band.

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.