Yesterday, a cycle low signal was nearly generated for the US dollar index, indicating that the Short-Term Cycle Low (STCL) that we have been expecting likely formed on April 30. Today, a cycle low signal was generated, confirming that a new short-term cycle has begun.
The overbought correction from January has developed into a consolidation formation during the last three months and price behavior during the next few weeks will likely provide an important signal with respect to intermediate-term direction.
As we often note, charts do not always have something meaningful to say, but it is important to listen to them when they do. The next several weeks will likely produce a meaningful signal with respect to the direction of the US dollar, so it is time to monitor price behavior closely.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.