By Colin Twiggs
January 17, 2009 1:00 a.m. ET (5:00 p.m. AET)
Spot gold respected short-term support at $800 and is headed for resistance at $900. Clear breakout above $900 would signal the start of a new (primary) up-trend. A secondary retracement is most likely, but would be a positive sign if it fails to test primary support at $700.
Brent Crude is likely to respect resistance at $50/barrel, signaling another test of support at $40. Failure of support would offer a target of the 2003 low of $20/$25.
The euro is retracing for another test of support at $1.25. Reversal above this level would be a positive sign, but Twiggs Money Flow warns of weakness. Failure of support would offer a target of $1.05/$1.00, calculated as 1.25 - ( 1.45 - 1.25 ). Expect further support around the 2005 low of $1.16.
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The yen continues in a primary up-trend against the dollar despite Twiggs Money Flow signaling weakness.
The Australian dollar retreated below $0.70 against the greenback, after breaking out from a broad consolidation between $0.60 and $0.70. Twiggs Money Flow warns of weakness. Failure of support at $0.60 would offer a target of $0.50, while reversal above $0.60 would be a bullish sign.
Remember that there is nothing stable in human affairs; therefore avoid undue elation in prosperity, or undue depression in adversity.