Monday Morning Update
July 17, 2006
Twiggs Money Flow (21-day) holding below the zero line signals distribution.
Spot gold is headed for a test of the recent high at $730, but a strengthening dollar may cause a retracement to test initial support at $640/$650.
EUR/USD: The euro broke through initial support at 1.27 USD and is headed for a test of intermediate support at 1.25. A close below 1.25 would indicate a test of primary support at 1.185/1.165.
The FTSE 100 is following other markets into a test of primary support levels, in this case at 5500.
The Nikkei 225 respected the 100-day exponential moving average from below: a strong bear signal. Expect a test of support at 14000/14200. A close below this level would confirm the primary down-trend.
The All Ordinaries is following other markets down. Expect a test of primary support at 4800.