The Australian Dollar found support at $0.8650/$0.8700. Respect of resistance at $0.8900, however, would suggest another decline. 13-Week Twiggs Momentum below zero warns of a primary down-trend. Breach of primary support at $0.8650 would offer a target of $0.80*.
* Target calculation: 0.87 – ( 0.94 – 0.87 ) = 0.80
The ASX 200 rallied in line with short-term buoyancy on the Aussie Dollar. Bullish divergence on 21-day Twiggs Money Flow and recovery above zero indicates medium-term buying pressure. But the trend remains down and failure of (short-term) support at 5120 would warn of a test of primary support at 5000/5050. Breach of the declining trendline is unlikely, but would suggest that the correction is ending. Follow-through above 5350 would confirm.
* Target calculation: 5350 – ( 5650 – 5350 ) = 5050
The ASX 200 VIX continues to indicate low risk typical of a bull market.
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What is the equation to your “target calculation”? I have find it interesting
Hi Courtney,
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The target is based on the symmetry of most chart patterns — next advance = last trough — though there are exceptions where the trend is fast (troughs above preceding peaks) or slow (troughs below preceding peaks). Invert in a down-trend.