The euro broke medium-term resistance at $1.32, indicating a rally to test the descending trendline at $1.38*. Momentum is rising but the primary trend remains downward.
* Target calculation: 1.32 + ( 1.32 – 1.26 ) = 1.38
Pound Sterling broke its descending trendline, but respect of the zero line by 63-day Twiggs Momentum suggests continuation of the primary down-trend. A fall below $1.565 (the last two weeks low) would warn of another test of primary support at $1.530. Recovery above $1.590 is less likely, but would indicate a rally to test $1.620.
The greenback broke through resistance at ¥80 and is now retracing to test its new support level. Respect would confirm a primary up-trend, signaled by the long-term bullish divergence on 63-day Twiggs Momentum (and its recovery above zero).
* Target calculation: 80 + ( 80 – 75 ) = 85
The Aussie Dollar consolidated against the South African Rand in recent months after a long appreciation. 63-day Twiggs Momentum is declining and breakout below R8.00 would warn of a correction to the rising trendline, with a target of R7.50*. Upward breakout, however, would offer an initial target of R9.00.
* Target calculation: 8.00 – ( 8.50 – 8.00 ) = 7.50
