The Euro is testing short-term support at $1.2250 on the daily chart. Recovery above $1.2400 would indicate another rally, while failure of support would test primary support at $1.2050. The primary trend is still downwards, but breach of the descending trendline means the primary down-trend is losing momentum and a bottom is forming. Failure of primary support is unlikely but would warn of another down-swing, with a target of $1.185.
* Target calculation: 1.215 – ( 1.245 – 1.215 ) = 1.185
Pound Sterling found support at €1.255 against the Euro before rallying to €1.28. Narrow consolidation between €1.27 and €1.28 suggests continuation of the rally. Breach of resistance at €1.29 would signal an advance to €1.315*. Rising 63-day Twiggs Momentum reflects a strong primary up-trend.
* Target calculation: 1.285 + ( 1.285 – 1.255 ) = 1.315
Canada’s Loonie is headed for a test of resistance against the greenback at $1.02. Bullish divergence on 63-day Twiggs Momentum on the weekly chart suggests a primary up-trend; confirmed if resistance at $1.02 is broken.
Shallow retracement of the Aussie Dollar against the greenback suggests trend strength. Recovery above $1.06 would indicate an advance to $1.075. Breakout above $1.075/$1.08 would offer a long-term target of $1.20* but RBA intervention, to protect local industry, could be a factor.
* Target calculation: 1.045 + ( 1.045 – 1.015 ) = 1.075
The greenback found support at ¥78 against the Japanese Yen. Rising Twiggs Momentum and penetration of the descending trendline both warn that a bottom is forming. Recovery above ¥80.50 would complete a double bottom reversal, suggesting an advance to ¥84.
* Target calculation: 81 + ( 81 – 78 ) = 84
The Aussie Dollar broke medium-term resistance at ¥82 against the Japanese Yen, headed for a test of the upper range border at ¥88/¥90. Rising 63-Day Twiggs Momentum and recovery above zero suggest a primary up-trend as the Aussie Dollar attracts capital inflows.
Not really about the currency charts but do you have any views on the sharp rise we have seen lately on US Treasury 10 and 30 year yields but maybe the higher Treasury yields are pulling in support for US Dollar? – Kind regards, Julian
The Fed increased its holdings of Treasury securities and MBS last week, so it is not them driving yields higher. It appears that investors are flowing out of bonds and into stocks.