Forex: Euro tests resistance, Aussie breaks support

The Euro broke medium-term resistance at $1.32 and is testing the next level at $1.34. Breakout would indicate a primary advance, while respect of resistance (indicated by reversal below $1.32) would warn of another test of primary support at $1.27. Close oscillation of 13-week Twiggs Momentum around the zero line reflects hesitancy.

Euro/USD

* Target calculation: 1.34 + ( 1.34 – 1.28 ) = 1.40

Sterling is testing primary support at €1.135 against the euro. Long tails indicate buying pressure and recovery above €1.165 would suggest that a bottom is forming. Breakout above €1.19 would complete a double bottom with a target of €1.24.  Recovery of 13-week Twiggs Momentum above zero would strengthen the signal.

Sterling/Euro

* Target calculation: 1.19 + ( 1.19 – 1.14 ) = 1.24

Against the greenback, Sterling is testing medium-term resistance at $1.54. Last week’s long tail suggests buying pressure. Breakout would offer a target of $1.575. Respect is less likely, but would indicate another test of primary support at $1.485. Recovery of 13-week Twiggs Momentum above zero would strengthen the bull signal.

Sterling/Euro

The greenback is oscillating around 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 remains as likely, however, and would warn of a test primary support at ¥94.

USD/JPY

* Target calculation: 104 + ( 104 – 94 ) = 114

Canada’s Loonie continues its primary down-trend against the greenback. Breach of medium-term support at $0.96 would test the primary level at $0.94/$0.945. Failure of primary support would offer a long-term target of $0.84*.

Canadian Loonie

* Target calculation: 0.94 – ( 1.04 – 0.94 ) = 0.84

Against the Aussie Dollar, the Loonie remains in a strong up-trend .

Canadian Loonie

The Aussie Dollar also continues its primary down-trend against the greenback. Breach of medium-term support at $0.90 suggests a decline to $0.87*, but the long-term target is $0.80*.

Aussie Dollar

* Target calculations: 0.90 – ( 0.93 – 0.90 ) = 0.87; 0.95 – ( 1.10 – 0.95 ) = 0.80