Potential Short-term Signal: US Dollar Index Cycle Analysis

| June 5, 2015

The advance today has caused both short-term cycle oscillators to experience bullish crossovers and a bullish engulf pattern has formed on the daily chart. A close above 96.25 today would generate a cycle low signal and indicate that the beta low (BL) of the current short-term cycle likely formed on June 4.

A quick reversal followed by an extended beta phase decline that moves below the last short-term cycle low (STCL) at 93.18 would reconfirm the current bearish translation and favor additional short-term weakness. Alternatively, an extended beta phase rally that moves well above the last alpha high (AH) at 97.88 would signal the likely transition to a bullish translation.

Category: Signals, US Dollar

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