Euro weak while Aussie dollar strengthens
By Colin Twiggs
February 9th, 2012 2:00 a.m. ET (6:00 p:m AET)
The euro is testing resistance around $1.32 but the primary down-trend is strong. With 63-day Twiggs Momentum deep below zero, expect another test of primary support at $1.26. Breakout remains likely and would offer a target of $1.20*.
* Target calculations: 1.26 - ( 1.32 - 1.26 ) = 1.20
The Aussie dollar has surged ahead of the CRB Commodities Index which it tracks quite closely. Breakout above $1.08 would signal a primary advance to $1.20*.
* Target calculations: 1.08 + ( 1.08 - 0.96 ) = 1.20
Canada's Loonie shows a similar pattern, testing resistance at $1.01. Breakout would offer a target of $1.06*.
* Target calculations: 1.01 + ( 1.01 - 0.96 ) = 1.06
Pound Sterling followed through above the descending trendline, indicating that the primary down-trend is over. Recovery of 63-day Twiggs Momentum above zero would strengthen the signal. Only a breakout above 41.62, however, would signal the start of a primary up-trend.
The greenback continues to test support against the Japanese Yen at ¥76. Breakout would signal another decline, this time with a target of ¥72*. Long-term bullish divergence on 63-day Twiggs Momentum, however, indicates that the down-trend is slowing; breach of the descending trendline would strengthen the signal. Recovery above ¥80 would start a primary up-trend.
* Target calculations: 76 - ( 80 - 76 ) = 72
The South African Rand unexpectedly broke downwards from its bullish ascending triangle against the Aussie Dollar; follow-through below R8.00 would signal a correction to R7.50 (and the long-term trendline).
Lady, I do not make up things. That is lies. Lies are not true. But the truth could be made up if you know how. And that's the truth.
~ Lily Tomlin