Canada’s Loonie broke support at $0.995 and the rising trendline against the greenback, indicating another test of primary support at $0.95. Reversal of 63-day Twiggs Momentum below zero warns of a primary down-trend. Failure of support at $0.95 would confirm.
The Australian Dollar is expected to follow commodities lower, testing primary support at $0.96. 63-Day Twiggs Momentum below zero warns of another primary decline. Recovery above $1.02 is unlikely but would indicate an advance to $1.08.
The Australian Dollar strengthened against the South African Rand, but respect of resistance at R8.30 would warn of a decline to R7.50*. Breach of support at R7.90 would confirm. 63-Day Twiggs Momentum oscillating close to zero indicates uncertainty, however, and breakout above R8.30 would test long-term resistance at R8.50.
* Target calculation: 8.00 – ( 8.50 – 8.00 ) = 7.50
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
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.