ΣL Cycle Summary
This excellent signal in the Dollar Index is one to be watched closely given the influence of the reserve currency worldwide, most notably in the clear inverse relationship with EURUSD, which also (as you might expect!) features this component. Highlighted many times on the site in the past, this component is very stationary, pinpointing the majority of price peaks and troughs over the last few years. Our sample below of 13 iterations since November 2021 showcasing this regularity with only a few exceptions. The current down leg of this wave, running at around 80 days average wavelength, is almost over.