The $USD has formed a failed daily cycle. I've talked about this several times. The intermediate and yearly cycle declines are in full force. Today was day 7 of the current daily cycle. It broke below the previous DCL, therefore creating a failed daily cycle. These are normally indicative of an intermediate decline. The average DC runs 18-28 days. This gives us 5-10 more days of downside.
Stocks responded to this drop in the dollar. They may have formed a half cycle low in this current daily cycle.
Gold and Silver have yet to really respond. Perhaps today was a turning point, however. Gold posted a very nice hammer candle off of bottom support. There's currently a large symmetrical triangle. If the dollar continues to breakdown and gold can continue it's ascent over $1700 ($1702.50 as I write this now), we may have a date with ~$1735 by the end of the week. Note the last two times we touched the bottom of this trend line with a trend reversal.. they were formed with a hammer candle. The current candle forming overnight tonight has already formed a swing low for gold.
Today is day 6 of Gold's current DC.
GDX formed a weekly swing low last week. Price has since fallen lower. If price can close this week over that swing level, that would indicate a very bullish setup.
Until gold decides to move we must continue to wait for a signal of a breakout. For some reason, someone has had a specific interest in keeping gold under $1700. Meanwhile, the dollar has broken down severely and equities have rallied for 2 weeks now.
You can only stretch a rubberband so far before it breaks.
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