The Euro is in a primary down-trend, having broken support at $1.35. Declining 13-week Twiggs Momentum (below zero) confirms. Expect short-term support at $1.31 on the weekly chart, with long-term support at $1.27/$1.28.
Germany’s DAX encountered resistance below 9700/9800 and 13-week Twiggs Money Flow below zero warns of selling pressure. Reversal below 9300 would warn of another test of primary support at 9000.
Dow Jones Euro Stoxx 50 found similar resistance at 3200. A 13-week Twiggs Money Flow trough above zero, however, would indicate buying pressure, while a fall below zero would warn that sellers dominate. Reversal below 3100 would warn of another test of primary support at 3000.
The Footsie shows more resilience, testing long-term resistance at 6850/6900. 13-Week Twiggs Money Flow oscillating above zero indicates long-term buying pressure, but there is a major psychological barrier at 6900/7000 (the 1999 high) that has to be overcome. Breach of support at 6500 is unlikely, but would warn of a reversal.
* Target calculation: 7000 + ( 7000 – 6000 ) = 8000