By Colin Twiggs
April 16, 2009 11:00 p.m. ET (1:00 p:m AET)
Spot gold respected the new resistance level at $900, warning of a down-trend to test $700. Failure of short-term support at 865 would add further confirmation. Reversal above $900 is now unlikely, but would signal a bear trap.
The euro displays a bearish descending triangle; failure of support at $1.31 would warn of another test of primary support at $1.25. Upward breakout is unlikely, but would signal a test of the December high at $1.47. In the long term, failure of support at $1.25 would offer a target of parity (calculated as 1.25 - [ 1.50 - 1.25 ]). Recovery above $1.47 is most unlikely, but would signal a primary trend change — and test the all-time high of $1.60.
The dollar retreated below its new support level at ¥100, warning of a possible bull trap. Penetration of the rising trendline would confirm the signal, indicating a test of ¥87. Until then, reversal above ¥100 remains equally likely, confirming the up-trend and offering a long-term target of ¥110 (the August 2008 high).
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The Australian dollar made a false break above resistance at $0.7300 against the greenback, warning of a possible bull trap. Breakout below $0.7150 and the rising trendline would confirm the signal, offering a target of primary support at $0.6300. Until then, reversal above $0.7300 remains as likely, and would offer a target of the September high at $0.8500.
If we can boondoggle ourselves out of this depression, that word is going to be enshrined in the hearts of the American people for years to come.
~ Franklin D. Roosevelt