The Euro broke medium-term support at $1.23, signaling a test of the 2010 low at $1.19/$1.20. Declining 63-day Twiggs Momentum warns of a strong down-trend. Breach of the 2010 low becomes likely if the ECB had to indicate an intention to directly or indirectly purchase government bonds — and would suggest a long-term decline.
Pound Sterling broke through €1.26 against the Euro and is now retracing to test the new support level. Rising 63-day Twiggs Momentum indicates an accelerating up-trend. Respect of support is likely and would offer a target of €1.29.
* Target calculation: 1.26 + ( 1.26 – 1.23 ) = 1.29
Canada’s Loonie is weakening against the Aussie Dollar but long-term bullish divergence on 63-day Twiggs Momentum (and breach of the descending trendline) warns of reversal to an up-trend. Breakout above parity would confirm.
The Aussie Dollar broke support at $1.02 USD and its recent broadening wedge on the 2-hour chart. Expect a decline to $1.01; confirmed if short-term support at $1.015 is broken.
* Target calculation: 1.02 – ( 1.025 – 1.015 ) = 1.01
A long-term chart shows the US dollar forming a bottom against the Yen after long-term bullish divergence on 63-day Twiggs Momentum and breach of the descending trendline. Breakout above the current descending trendline and resistance at ¥80 would indicate another test of ¥84/¥85, while breach of that level would confirm a primary up-trend.
* Target calculation: 84 + ( 84 – 78 ) = 90
Your comments are always interesting, I’ve been following them for the last 2 years.
Which is the difference between your Twigg Momentum and a normal Momentum Oscillator ?
And why did you now choose a 63 day period instead of the previous 21 ?
My version uses a formula to “smooth” Momentum and prevent it from “barking twice” – when sharp rises or falls are added and removed from the time frame.
I find that 63-day (representing one quarter) more accurately represents the primary trend while 21-day is more useful for secondary movements.