The Euro continues to test medium-term resistance at $1.32. Respect of primary support at $1.27 is likely, following bullish divergence on 13-week Twiggs Momentum. Breakout above $1.32 would strengthen the signal, while follow-through above $1.37 would confirm a fresh advance, offering a target of $1.50. Reversal below $1.27 is unlikely, but would warn of a primary down-trend.
* Target calculation: 1.37 + ( 1.37 – 1.27 ) = 1.47
The greenback continues to test resistance at ¥100 against the Yen. Follow-through above ¥101.50 would suggest a new advance, while breakout above ¥104 would confirm, offering a target of ¥114*. Reversal below ¥98.50 is unlikely, but would warn of a test primary support at ¥94.
* Target calculation: 104 + ( 104 – 94 ) = 114
Canada’s Loonie respected support at $0.94, suggesting a rally to test resistance at parity against the greenback. The monthly chart displays long-term selling pressure, however, and another test of primary support at $0.94 is likely. Breakout would warn offer a target of $0.84*. Declining 13-week Twiggs Momentum already suggests a primary down-trend.
* Target calculation: 0.94 – ( 1.04 – 0.94 ) = 0.84
A monthly chart of the Aussie Dollar displays a similar pattern against the greenback, with a broad top followed by breakout below primary support at $0.95. Support at $0.90 provides temporary respite, but the long-term target is $0.80*. Again, declining 13-week Twiggs Momentum indicates a primary down-trend.
* Target calculation: 0.95 – ( 1.10 – 0.95 ) = 0.80
The Aussie/Kiwi cross has exceeded its target of $1.15*, steady decline on the weekly chart reflecting the impact of falling commodity prices. Breakout above the descending trendline would indicate a rally to test resistance at $1.21, but that seems a way off with the decline in 13-week Twiggs Momentum accelerating.
* Target calculation: 1.21 – ( 1.27 – 1.21 ) = 1.15