The Euro is again testing support at $1.30. The short weekly candle at the support level warns of a downward breakout to test primary support at $1.26. A 63-day Twiggs Momentum peak below zero would suggest continuation of the primary down-trend. In the long term, failure of $1.26 would signal a decline to $1.18*.
* Target calculation: 1.26 – ( 1.34 – 1.26 ) = 1.18
Pound Sterling ran into resistance at $1.60 and failure of short-term support at $1.58 would test $1.56. Recovery of 63-day Twiggs Momentum above zero suggests reversal to a primary up-trend; but this would only be confirmed by breach of resistance at $1.62.
The US Dollar is correcting against the Japanese Yen, headed for a test of support at ¥80. Respect would indicate a primary up-trend; confirmed if resistance at ¥84 is broken. A 63-day Twiggs Momentum trough above zero would strengthen the signal.
* Target calculation: 85 + ( 85 – 80 ) = 90
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.