Forex: Aussie Dollar, Euro, Pound Sterling and Canadian Loonie
By Colin Twiggs
November 6th, 2012 4:00 a.m. ET (7:00 p:m AET)
The Aussie Dollar broke resistance at $1.04 after the RBA announced that it would not cut interest rates, leaving them on hold until December. Expect an advance to $1.06*. 63-Day Twiggs Momentum oscillating above zero suggests a primary up-trend.
* Target calculation: 1.04 + ( 1.04 - 1.02 ) = 1.06
The Euro (weekly chart) is testing support at $1.28. Breakout would respect the primary down-trend, warning of another test of primary support at the 2010 low at $1.19/1.20. Reversal of 63-day Twiggs Momentum below zero would strengthen the signal. Recovery above $1.32 is less likely but would indicate an advance to $1.35/$1.36*.
* Target calculation: 1.32 + ( 1.32 - 1.28 ) = 1.36
Pound Sterling (weekly) rallied off support at €1.225 against the Euro. Breakout above €1.26 would indicate an advance to €1.29. A 63-day Twiggs Momentum trough above zero — and respect of the rising trendline — would both indicate a healthy up-trend. Breach of support at €1.225, however, would signal a primary down-trend.
* Target calculation: 1.26 + ( 1.26 - 1.23 ) = 1.29
Canada's Loonie (weekly) is testing support at parity against the greenback. Respect would indicate an advance to $1.06*. Breach of resistance at $1.03 would strengthen the signal and a 63-day Twiggs Momentum trough above zero would confirm. Failure of support, however, would warn of another test of primary support at $0.96.
* Target calculation: 1.03 + ( 1.03 - 1.00 ) = 1.06
You've got to be very careful if you don't know where you are going, because you might not get there.
~ Yogi Berra