The Euro is consolidating above support at $1.30. Failure would test primary support at $1.26. A 63-day Twiggs Momentum peak below zero would indicate continuation of the primary down-trend. In the long term, failure of $1.26 would signal a decline to the 2010 low of $1.19/$1.20*.
* Target calculation: 1.26 – ( 1.34 – 1.26 ) = 1.18
Pound Sterling is consolidating below resistance at $1.60. Upward breakout would indicate an advance to the 2011 high of $1.67 — confirmed if resistance at $1.62 is penetrated — while failure of short-term support at $1.58 would warn of another test of primary support at $1.53. 63-Day Twiggs Momentum above zero indicates a primary up-trend; but this would only be confirmed by breakout above $1.62.
The US Dollar is testing support at ¥80, against the Japanese Yen. Respect is likely and recovery above ¥82 would indicate a fresh primary advance. Penetration of resistance at ¥84 would confirm the primary up-trend already signaled by 63-day Twiggs Momentum above zero.
* Target calculation: 85 + ( 85 – 80 ) = 90
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
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.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.