Forex: Euro, Pound Sterling, Australian Dollar and Canadian Loonie
By Colin Twiggs
June 28th, 2012 4:00 a.m. ET (6:00 p:m AET)
The Euro retreated below support at $1.26, indicating a test of the 2010 low at $1.19/$1.20. Breach of the rising trendline on 63-day Twiggs Momentum would strengthen the bear signal.
Pound Sterling is testing resistance at $1.58 against the greenback. Respect would indicate another test of primary support at $1.52. A 63-day Twiggs Momentum peak below zero would warn of a primary down-trend.
* Target calculation: 1.53 - ( 1.63 - 1.53 ) = 1.43
Against the Euro, Pound Sterling is in an accelerating up-trend. The gap between the recent low at €1.225 and the previous peak at €1.215 suggests strong buying pressure — as does 63-day Twiggs Momentum oscillating high above zero.
* Target calculation: 1.25 + ( 1.25 - 1.215 ) = 1.285
Canada's Loonie is strengthening against the Aussie Dollar. Long-term bullish divergence on 63-day Twiggs Momentum warns of reversal to a primary up-trend. Breakout above parity would confirm.
* Target calculation: 1.00 + ( 1.00 - 0.96 ) = 1.04
Short retracement suggests that the Aussie Dollar is, in turn, strengthening against the greenback on the Daily chart. Breakout above $1.02 (and the descending trendline) would indicate that a bottom is forming. Recovery of 63-day Twiggs Momentum above zero would suggest a primary up-trend.
* Target calculation: 1.02 + ( 1.02 - 1.00 ) = 1.04
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