Cycle Trading: Weekend report preview
The Dollar
Despite forming a swing low off of the day 13 bullish candle, the dollar has been contained by the declining 10 day MA.
Friday was day 22 for the dollar’s daily cycle. The dollar should go on to break below the day 13 low of 92.12 in order to form its DCL. However the dollar printed a bullish reversal on Friday and notice that the 10 day MA has begun to turn higher. The cycle low should be the lowest point following the cycle peak but if the dollar closes back above the 10 day MA will may need to label day 22 as the DCL. Currently, the dollar is in a daily downtrend. It will remain in its daily downtrend until it can close back above the upper daily cycle band.
Stocks
Stocks printed a bearish reversal on day 6 had been consolidating since.
Stocks are still holding the breakout above the previous daily cycle high. A bullish break out of consolidation indicates the next leg of this rally and potentially into a bubble phase. But a close below the 3535 breakout level will indicate a failed breakout and the daily cycle decline.
Reprinted from FXStreet,the copyright all reserved by the original author.
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