Forex: Euro slides on Greek turmoil

The euro retreated below $1.32 USD; failure of support at $1.30 would indicate another test of primary support at $1.26. And breakout below primary support would signal a decline to $1.20*.


* Target calculation: 1.26 – ( 1.32 – 1.26 ) = 1.20

Pound Sterling is retreating on the weekly chart. Respect of the zero line by 63-day Twiggs Momentum warns of another test of primary support at $1.53.

Pound Sterling

Canada’s Loonie respected resistance at $1.01 and is likely to re-test its rising trendline. Recovery above $1.01 is uncertain but would signal a primary up-trend.


* Target calculation: 1.01 + ( 1.01 – 0.96 ) = 1.06

The Aussie Dollar similarly respected resistance at $1.08 and is likely to test medium-term support and the rising trendline at $1.04. Breakout above $1.08 would indicate a primary up-trend; confirmed if 63-day Momentum respects the zero line (from above).

Aussie Dollar

* Target calculation: 1.08 + ( 1.08 – 0.96 ) = 1.20

The US Dollar found support at R7.50 South African Rand. A rally that respects the descending trendline, however, would warn of continuation of the primary down-trend. Fall of 63-day Twiggs Momentum below zero would strengthen the bear signal.

US Dollar/South African Rand

The greenback is strengthening against the Japanese Yen. Breach of the descending trendline indicates that a bottom is forming. And breakout above ¥80 would signal the start of a primary up-trend — confirming the long-term bullish divergence on 63-day Twiggs Momentum.

Japanese Yen

* Target calculation: 80 + ( 80 – 76 ) = 84