By Colin Twiggs
July 27th, 2012 10:30 p.m. ET (12:30 p:m AET)
The euro is testing resistance at $1.23/$1.24 against the greenback. Breakout above resistance and the descending trendline would warn that the primary down-trend is weakening and a bottom is forming . Negative values on 63 -day Twiggs Momentum continue to indicate a primary down-trend and respect of resistance would favor another decline.
* Target calculation: 1.205 - ( 1.24 - 1.205 ) = 1.17
Pound Sterling is retracing to find support against the euro. Friday's doji signals uncertainty. Respect of €1.27 would mean that the up-trend is still accelerating, while respect of €1.255 would indicate a healthy trend.
* Target calculation: 1.26 + ( 1.26 - 1.23 ) = 1.29
Canada's Loonie is strengthening against the greenback on the weekly chart. Breakout above parity would confirm a test of $1.02*. Fluctuation of 63 -day Twiggs Momentum around zero, between 3% and -3%, would indicate a ranging market.
The Aussie dollar is testing resistance at $1.045/$1.05 against the greenback. Breakout would offer an initial target of $1.08*. Recovery of 63 -day Twiggs Momentum above zero suggests a primary up-trend.
* Target calculation: 1.05 + ( 1.05 - 1.02 ) = 1.08
The Aussie is also testing resistance at 82/82.50 Japanese yen. Breakout would offer an initial target of 84.50* and a medium-term target of 88.
* Target calculation: 82 + ( 82 - 79.5 ) = 84.5
Against the South African Rand, the Aussie is retracing to test support at R8.50. Respect would offer an initial target of R9.00*. Rising 63 -day Twiggs Momentum continues to indicate a primary up-trend.
* Target calculation: 8.75 + ( 8.75 - 8.50 ) = 9.00
The shield may be as important for victory as the sword or spear.
~ Charles Darwin