The euro remains in a strong primary down-trend. The current rally is testing resistance at $1.32, but 63 -day Twiggs Momentum continues to trend downwards. Breach of support at $1.26 would signal a down-swing to $1.20*.
* Target calculation: 1.26 – ( 1.32 – 1.26 ) = 1.20
Pound Sterling has breached its declining trendline against the greenback, warning that a bottom is forming. Breakout above $1.62 would complete a double bottom reversal, testing the 2011 high at $1.68.
* Target calculation: 1.62 + ( 1.62 – 1.53 ) = 1.71
Canada’s Loonie also signals that a bottom is forming. Breakout above $1.01 would indicate the start of a primary up-trend, with an initial target of $1.06*.
* Target calculation: 1.01 + ( 1.01 – 0.96 ) = 1.06
The Aussie is testing resistance at $1.08. Breakout would similarly signal a primary up-trend with an initial target of $1.18*.
* Target calculation: 1.08 + ( 1.08 – 0.98 ) = 1.18
The greenback is testing primary support at 76 against the Japanese yen. Breakout would offer a target of 72*. Recovery above the declining trendline, however, would suggest that a bottom is forming — confirming the large bullish divergence on 63-day Twiggs Momentum — while breakout above 80 would signal a primary up-trend.
* Target calculation: 76 – ( 80 – 76 ) = 72
The South African Rand is strengthening against the US Dollar, while encountering resistance at R8.50 against its Australian counterpart. Downward breakout from the ascending triangle would warn of a correction to test the long-term trendline at R7.50, while breakout above R8.50 would indicate another primary advance, with a target of R9.50*.
* Target calculation: 8.50 + ( 8.50 – 7.50 ) = 9.50
