Dollar Breaks Support

By Colin Twiggs
November 26, 2009 3:00 a.m. ET (7:00 p:m AET)

These extracts from my trading diary are for educational purposes and should not be interpreted as investment or trading advice. Full terms and conditions can be found at Terms of Use.

The US Dollar Index broke through support at 75, the tall red candle indicating strong selling pressure. The short-term target is 74*, but the medium-term target is the 2008 low of 71. Expect retracement to respect the new resistance level at 75.

* Target calculation: 75 - ( 76 - 75 ) = 74

Euro

The euro broke through resistance at $1.50, offering a short-term target of $1.52* and a long-term target of the 2008 high at $1.60*. Momentum holding above zero confirms a strong up-trend (this is a new indicator due for release with the next Beta version). Expect retracement to respect the new support level.

* Target calculation: 1.50 + ( 1.50 - 1.48 ) = 1.52 and 1.50 + ( 1.50 - 1.40 ) = 1.60

Pound Sterling

The pound found support at $1.65 and is headed for a test resistance at $1.70. Breakout above $1.70 would offer a long-term target of $1.80. Reversal below $1.65 is unlikely, but would test the band of support between $1.58 and $1.60.

* Target calculation: 1.70 + ( 1.70 - 1.60 ) = 1.80

Japanese Yen

The dollar broke through support at the December 2008 low of ¥87 after last night's close, but has since encountered buying pressure. Expect a test of the new resistance level, but the medium-term target is 84*.

* Target calculation: 88 - ( 92 - 88 ) = 84

Australian Dollar

The Aussie dollar encountered resistance at $0.93 and has since retreated to $0.92. Recovery above $0.93 would signal an advance to the upper trend channel at $0.96*, while failure of support at $0.91 would signal a test of $0.90. Reversal below $0.90 remains unlikely, but would warn of a secondary correction.

* Target calculation: 0.93 + ( 0.93 - 0.90 ) = 0.96

Help to keep this newsletter free! Forward this link to friends and colleagues

The second half of a man's life is made up of nothing but the habits he has acquired during the first half.

~ Fyodor Dostoevsky

	Dollar Breaks Support By Colin Twiggs November 26, 2009 3:00 a.m. ET (7:00 p:m AET) These extracts from my trading diary are for educational purposes and should not be interpreted as investment or trading advice. Full terms and conditions can be found at Terms of Use. The US Dollar Index broke through support at 75, the tall red candle indicating strong selling pressure. The short-term target is 74, but the medium-term target is the 2008 low of 71. Expect retracement to respect the new resistance level at 75. Target calculation: 75 - ( 76 - 75 ) = 74 Euro The euro broke through resistance at $1.50, offering a short-term target of $1.52* and a long-term target of the 2008 high at $1.60. Momentum holding above zero confirms a strong up-trend (this is a new indicator due for release with the next Beta version). Expect retracement to respect the new support level. Target calculation: 1.50 + ( 1.50 - 1.48 ) = 1.52 and 1.50 + ( 1.50 - 1.40 ) = 1.60 Pound Sterling The pound found support at $1.65 and is headed for a test resistance at $1.70. Breakout above $1.70 would offer a long-term target of $1.80. Reversal below $1.65 is unlikely, but would test the band of support between $1.58 and $1.60. * Target calculation: 1.70 + ( 1.70 - 1.60 ) = 1.80 Japanese Yen The dollar broke through support at the December 2008 low of ¥87 after last night's close, but has since encountered buying pressure. Expect a test of the new resistance level, but the medium-term target is 84. Target calculation: 88 - ( 92 - 88 ) = 84 Australian Dollar The Aussie dollar encountered resistance at $0.93 and has since retreated to $0.92. Recovery above $0.93 would signal an advance to the upper trend channel at $0.96, while failure of support at $0.91 would signal a test of $0.90. Reversal below $0.90 remains unlikely, but would warn of a secondary correction. Target calculation: 0.93 + ( 0.93 - 0.90 ) = 0.96 Help to keep this newsletter free! Forward this link to friends and colleagues The second half of a man's life is made up of nothing but the habits he has acquired during the first half. ~ Fyodor Dostoevsky	Share: A+ A− Incredible Charts 10.1 Windows software with proprietary trading tools and stock screens. Download 5-Day Free Trial Try it Now! Incredible Charts 11.0 Proprietary trading tools and stock screens now in your browser. Free Trial 30-Day Free Trial Try it Now! Trading Diary Free education, macro outlook and technical updates: Join Now
Contact Us Privacy Policy Terms of Use Disclaimer © Copyright 2001 - 2024 Incredible Charts Pty Ltd. Twiggs^® indicators is a Registered Trade Mark of Incredible Charts Pty Ltd. All rights reserved.