The Australian Dollar found support at $0.8650/$0.8700 and is likely to retrace to test the new resistance level at $0.8850/$0.8900. Declining 13-week Twiggs Momentum (below zero) signals a primary down-trend. Respect of resistance is likely and breach of primary support ($0.8650) would offer a target of $0.80*.
* Target calculation: 0.87 – ( 0.94 – 0.87 ) = 0.80
The ASX 200 is also retracing and likely to test resistance around 5350. Peaks below zero on 13-week Twiggs Money Flow warn of long-term selling pressure. Respect of resistance is likely and would warn of a test of 4900/5000*.
* Target calculation: 5350 – ( 5700 – 5350 ) = 5000
The ASX 200 VIX is rising, but remains at levels typical of a bull market.
