The euro respected resistance at $1.32 in December, confirming a primary decline to $1.22*. Falling 63-day Twiggs Momentum strengthens the signal.
* Target calculation: 1.32 – ( 1.42 – 1.32 ) = 1.22
Canada’s Loonie broke its descending trendline to suggest a base is forming, as oil prices strengthen. Breakout above $1.01 would indicate a primary advance to the August 2011 high of $1.06.
* Target calculation: 1.01 + ( 1.01 – 0.95 ) = 1.07
The Aussie Dollar is also strengthening. Breakout above $1.04 would signal another attempt at $1.075. In the long-term, breach of $1.075 would signal a primary advance to 1.20*.
* Target calculation: 1.08 + ( 1.08 – 0.96 ) = 1.20