Canada’s Loonie continues a narrow consolidation below $1.01, suggesting an upward breakout in response to higher oil prices. Recovery of 63-day Twiggs Momentum above zero indicates a primary advance. Target for the advance would be the 2011 high of $1.06. Breach of the rising trendline is unlikely, but would warn of reversal.
* Target calculation: 1.01 + ( 1.01 – 0.96 ) = 1.06
The Aussie Dollar reflects broader weakness in commodities. Breach of the rising trendline would warn of a decline to test primary support at $0.96, while respect would indicate another test of $1.08 — and suggest an upward breakout.
Against the South African Rand, the Aussie Dollar continues to test support at R8.00. Narrow consolidation suggests a downward breakout and test of the long-term trendline at R7.50. Reversal of 63-day Twiggs Momentum below zero would warn of a primary down-trend.
* Target calculation: 8.00 – ( 8.50 – 8.00 ) = 7.50