Canada’s Loonie, buoyed by rising oil prices, is testing resistance at $1.01/$1.015. Narrow consolidation suggests an upward breakout and advance to the 2011 high of $1.06*. 63-Day Twiggs Momentum above zero also indicates a primary advance.
* Target calculation: 1.01 + ( 1.00 – 0.95 ) = 1.06
The Australian Dollar, dragged lower by weaker commodity prices, is testing medium-term support at $1.04 on the Weekly chart. Respect of the rising trendline is more likely and would indicate a breakout above the ascending triangle at $1.08. Long-term target for an advance would be $1.20 but that seems unachievable in the near-term. Breach of the rising trendline is less likely, but would warn of a correction back to $0.96; and reversal of 63-day Twiggs Momentum below zero would indicate a primary down-trend.
* Target calculation: 1.08 + ( 1.08 – 0.96 ) = 1.20
The Aussie Dollar breached support against the South African Rand at R8.00 on the Daily chart. Follow-through below R7.90 would confirm a correction to $7.60*. Breach of the long-term rising trendline, however, would warn of a primary down-trend.
* Target calculation: 8.05 – ( 8.45 – 8.05 ) = 7.60
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.
