The Euro retreated below support at $1.26, indicating a test of the 2010 low at $1.19/1.20. Breach of the rising trendline on 63-day Twiggs Momentum would strengthen the bear signal.
Pound Sterling is testing resistance at $1.58 against the greenback. Respect would indicate another test of primary support at $1.52. A 63-day Twiggs Momentum peak below zero would warn of a primary down-trend.
* Target calculation: 1.53 – ( 1.63 – 1.53 ) = 1.43
Against the Euro, Pound Sterling is in an accelerating up-trend. The gap between the recent low at €1.225 and the previous peak at €1.215 suggests strong buying pressure — as does 63-day Twiggs Momentum oscillating high above zero.
* Target calculation: 1.250 + ( 1.250 – 1.215 ) = 1.285
Canada’s Loonie is strengthening against the Aussie Dollar. Long-term bullish divergence on 63-day Twiggs Momentum warns of reversal to a primary up-trend. Breakout above parity would confirm.
* Target calculation: 1.00 + ( 1.00 – 0.96 ) = 1.04
Short retracement suggests that the Aussie Dollar is, in turn, strengthening against the greenback on the Daily chart. Breakout above $1.02 (and the descending trendline) would indicate that a bottom is forming. Recovery of 63-day Twiggs Momentum above zero would suggest a primary up-trend.
* Target calculation: 1.02 + ( 1.02 – 1.00 ) = 1.04
(all against the US $) Aussie is up , maybe to $1.10 – $1.15. Euro up, GBP Up. US $ down against Gold 🙂
What about the traditional link between commodities prices and the AUS dollar? Should we be looking for a resumption of that pairing?
The Aussie will no doubt still be affected by falling commodity prices but a new report by Westpac highlights the inflows on capital account, with offshore investors buying Australian government (state and federal) and corporate bonds.