The Euro is testing support at $1.3350 against the greenback after a false break above the February high of $1.37. Penetration of the secondary trendline warns of a correction. Rising 13-week Twiggs Momentum, however, continues to indicate a primary up-trend. Breach of $1.3350 would test primary support and the long-term rising trendline at $1.31. Recovery above $1.37 is less likely, but would signal a fresh advance.
* Target calculation: 1.38 + ( 1.38 – 1.34 ) = 1.42
The greenback completed a higher trough against the Yen, offering a target of ¥101. Breakout above ¥101 would signal a fresh advance to ¥105. Recovery of 13-week Twiggs Momentum above 5% would complete a trough above zero, continuing the primary up-trend. Reversal below support at ¥96 is unlikely, but would test primary support at ¥94.
* Target calculation: 1.01 + ( 1.01 – 0.97 ) = 1.05
The Aussie Dollar also weakened against the greenback, retracing to medium-term support at $0.93*. Respect would signal continuation of the up-trend; follow-through above $0.97 would confirm, offering a target of parity*. Recovery of 13-week Twiggs Momentum above zero would strengthen the signal. Breach of support at $0.93 and a Twiggs Momentum peak below zero, on the other hand, would test primary support at $0.89. The RBA needs a weaker Aussie Dollar and will do all it can to assist the decline.
* Target calculation: 0.975 + ( 0.975 – 0.95 ) = 1.00