The falling Aussie Dollar continues to reflect local market weakness. Breach of primary support at $0.89 against the greenback would indicate a primary decline, with a long-term target of $0.81*. The recent Twiggs Momentum peak below zero also suggests a primary down-trend. Respect of support, and recovery above the descending (orange) trendline, is unlikely but would indicate another rally.
* Target calculation: 0.89 – ( 0.97 – 0.89 ) = 0.81
The ASX 200 correction halted above medium-term support between 4900 and 5000, but there are no signs yet of a reversal. Bearish divergence on 13-week Twiggs Money Flow continues to warn of selling pressure. Breach of support at 4900 would warn of a test of primary support at 4650. Respect of support (4900) and Twiggs Money Flow respect of the zero line are both unlikely, but would suggest continuation of the primary up-trend.
Low values on the ASX 200 VIX continue to reflect low market risk.