The Euro retraced to test resistance at the former primary support level of $1.26. The peak that respected the zero line on 63-Day Twiggs Momentum warns of a strong primary down-trend. Respect of resistance would strengthen the signal, indicating a test of the 2010 low at $1.20.
Pound Sterling is correcting after strong appreciation against the Euro. Expect a test of the rising trendline around €1.21/€1.22. Penetration would warn of weakness, but respect and/or a 63-Day Twiggs Momentum trough above zero would indicate a healthy primary up-trend.
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.
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