The Aussie Dollar is testing short-term support at $1.06, the lower peak at $1.08 warning of selling pressure. Breach of the secondary rising trendline (and support at $1.06) would warn of a correction to the long-term trendline around $1.02. Recovery above $1.08, however, would signal a fresh primary advance with a long-term target of $1.20*.
* Target calculation: 1.08 + ( 1.08 – 0.96 ) = 1.20
Canada’s Loonie continues to consolidate below $1.01 on the weekly chart, while 63-day Twiggs Momentum crossed to above zero, indicating a primary up-trend. Breakout above $1.01 would confirm, offering an initial target of $1.06*.
* Target calculation: 1.01 + ( 1.01 – 0.96 ) = 1.06
Both the Aussie and the Loonie are strongly influenced by commodity prices. If the CRB Commodities Index breaks resistance, expect both currencies to follow — though Canada will benefit more from higher oil prices.