Canada’s Loonie continues its narrow consolidation between $0.995 and $1.01 but falling crude prices warn that a correction is likely. Breakout below $0.995 and reversal of 63-day Twiggs Momentum below zero would both signal a correction. Upward breakout is currently unlikely but would signal a primary advance to $1.06*.
* Target calculation: 1.01 + ( 1.01 – 0.96 ) = 1.06
On the daily chart, the Aussie Dollar found short-term support at $1.025 and is now rallying to test resistance at $1.045. Respect would indicate continuation of the correction, with a target of parity. Weaker commodity prices increase the likelihood of a strong correction. Reversal of 63-day Twiggs Momentum below zero would strengthen the signal.
* Target calculation: 1.02 – ( 1.04 – 1.02 ) = 1.00

Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.