The Euro is headed for a test of primary support at $1.26 against the greenback, after breaking support at $1.30. Respect of the zero line by 63-day Twiggs Momentum indicates continuation of the primary down-trend. Failure of support would signal a decline to $1.17*.
* Target calculation: 1.26 – ( 1.35 – 1.26 ) = 1.17
Pound Sterling continues to strengthen against the euro, testing resistance at €1.26*. The 63-day Twiggs Momentum trough high above zero indicates a strong up-trend. Weak retracement which fails to test the new support level around €1.22 would alert us to an accelerating/exponential up-trend.
* Target calculation: 1.22 + ( 1.22 – 1.18 ) = 1.26
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.