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The U.S. dollar is likely to hit a new high. The dollar DXY index broke through the 97.7 resistance in late April and projected 100 on the upside. However, the weekly price cycle then turned down and limited the breakout rally to 98.2. The weekly cycle bottoms now, but the weekly and the monthly cycles will run counter to each other into the end of May. As the weekly cycle bottoms, the monthly cycle tops. The likely outcome for the rest of this month will be a trading range in the 96.6-97.8 area. The cycles do not synchronize until early June when the two rhythms top. This suggests a correction early in the next month. Note that the weekly cycle bottoms on June 12th and that the monthly cycle bottoms on June 8th. This period is likely to be the next solid low from which the dollar will rally to the 100 objective. Gold cycles roughly confirm the dollar cycles by topping as the dollar cycle bottoms and vice-versa.
Chart 1-U.S. Dollar Weekly Cycle
Chart 2-U.S. Dollar Monthly Cycle
Chart 3-Daily U.S. Dollar
