The USD may well have found a short term Trading Cycle Low (TC Low or DCL) yesterday as it was late in my timing band to find one. To confirm, the USD needs to first close above the 10ema near 100.78 and then test / breach my red down trend line. These two steps would signal a DCL is in and that a new Trading Cycle has started.
Based on Time, however, the USD is also due to start moving into its longer term 5-6 month Intermediate Cycle Low. My expectations are that the USD will bounce up towards the 101-102 level before rolling over on or before day 8. This price action would form a Head and Shoulders topping pattern and should facilitate Gold’s move into its next short term TC Low or DCL.
My second chart gives my perspective on the USD’s 15 Year Super-cycle. I think it is very likely that the USD will find its 15 year cycle high in 2017. If not here then perhaps later this year. Time will Tell. 😉
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