US Dollar Breakout
By Colin Twiggs
April 30, 2009 2:00 a.m. ET (4:00 p:m AET)
The euro is strengthening against the greenback. Clear breakout above the declining trendline would indicate an another rally — with a target of $1.47. Reversal below support at $1.29 remains as likely, and would test primary support at $1.25.
US Dollar Index
The US Dollar Index broke out below a large rising wedge, warning of a primary down-swing with a target of 74, calculated as 84 - [88 - 78]. Failure of support at 82.50 would confirm, while reversal above the lower border would indicate a false signal — and test of the upper border.
The dollar rallied off support at ¥96, headed for a test of the declining trendline. Reversal below ¥96 would test primary support at ¥93.50, while breakout above the declining trendline would confirm the primary up-trend and offer a target of ¥110 (the August 2008 high).
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The Aussie dollar is again testing resistance at $0.7300 against the greenback. Breakout would signal a primary up-trend with a target of the September high at $0.8500 — confirmed if retracement respects the new support level. Reversal below $0.7000 is now less likely, but would test primary support at $0.6300.
The more complicated the forms assumed by civilization, the more restricted the freedom of the individual must become.
~ Benito Mussolini
(A warning to us all about meekly accepting growing government complexity and interference in the free market)
Note to readers:
I will be taking a break next week. Newsletters will resume on Monday, May 11th. Regards, Colin