Confirmed Short-term Signal: US Dollar Index Cycle Analysis

| August 31, 2011

The move higher today caused both price oscillators to experience bullish crossovers and a bullish engulf pattern formed on the daily chart, generating a cycle low signal that indicates the beta low (BL) likely formed on August 29.

A move well above the alpha high (AH) of the previous cycle during the beta phase rally would suggest that cycle translation is in question. Alternatively, a brief rebound followed by a move below the last STCL during the beta phase decline would reconfirm left translation and forecast additional short-term losses.

Category: Signals, US Dollar

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