From Gold Scents:
I doubt anyone was surprised by the reversal in the dollar index today.
It's been made painfully clear that Bernanke is not going to tolerate a rising dollar, at least not for very long. Cycles are still working and still generating bounces out of daily cycle lows, but they are never allowed to get any traction before the next beat down starts.
I would say there's a pretty good chance that today's reversal is signaling that the current daily cycle topped on day four, and the pattern of lower lows and lower highs is still intact.
Presumably, the dollar will now start to decline and penetrate the May 1st intraday low before the next significant bounce. The daily cycle timing bands have adhered pretty closely to standard durations in the dollar index. I don't see any indication that has changed, so we can probably expect the next significant bounce sometime around the last week of May.
... In my opinion, gold is trying to move down into one more failed and left translated daily cycle, which I'm fairly confident would mark an intermediate-degree bottom.
However... as soon as Bernanke broke the dollar rally, gold lost all of its downside momentum...
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