USD And Gold Cycle Update

Just a quick update on the USD and Gold.  Today's move by the USD finally seemed to put a pause in the relentless uptrend by Gold and the Miners.  I have the USD on day 6 now in what is very clearly a new short term Trading Cycle.

My cycle analysis indicates that this USD Trading Cycle uptrend should top out sometime in the next two days if it is to be a Left Translated cycle that fails. If it does not, this would be an early warning that the USD may have also found its longer term Intermediate Cycle Low as well.

So from a Price and Time perspective, we should see the USD top out on or before day 8 somewhere between 101 and 102. Should my analysis be correct, we should likely see a drop in Gold to test the 10ema (and the Miners as well).  HCLs are often swift intraday moves that test or breach the 10ema sometime towards the 20ema.

The spike down to these levels should be intraday only and we should not see a close below the 10ema in Gold. If we did see a close below this level, that would be somewhat concerning with Gold only on day 9.  Overall, I see the next day or so as an excellent opportunity to add to your positions should you be under allocated.

 

Disclosure: None.

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Douglas Gammons 7 years ago Contributor's comment

Very nice charts.