Cycle trading: Dollar delivers bullish surprise

 Cycle trading: Dollar delivers bullish surprise

The dollar delivered a bullish surprise on Wednesday and bullish follow through on Thursday.

Prior to Wednesday the dollar had been in a daily downtrend characterized by highs forming below the upper daily cycle band and lows forming below the lower daily cycle band. The dollar delivered a bullish surprise on Wednesday by closing convincingly above the 50 day MA and the upper daily cycle band. Closing above the upper daily cycle band ends the daily downtrend and begins a new daily uptrend. Then the dollar delivered bullish follow through on Thursday by closing convincingly above the 200 day MA. This breaks the patters of lower highs and beings a pattern of higher highs.

Wednesday was only day 16 for the daily cycle. Which is still early enough in the daily cycle for the dollar to continue higher. However, the dollar became rather stretched above the 10 day MA and the 50 day MA over the past two days and may…

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