Forex Update

By Colin Twiggs
September 7th, 2012 2:00 a.m. ET (4:00 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 Euro is headed for $1.275, unaffected so far by the announcement that the ECB will purchase government bonds in the secondary market. Expect strong resistance at $1.275, reversal below the lower trend channel would warn of a correction.

Euro/US Dollar

Pound Sterling is weakening against the euro, with a descending triangle testing support at €1.255. Failure of support would indicate a test of €1.230. 63-Day Twiggs Momentum is falling, but continues to indicate a primary up-trend.

Pound Sterling/Euro

Canada's Loonie is testing resistance against the greenback at $1.02. Breakout would indicate an advance to the 2011 highs at $1.06. Reversal below parity is unlikely, but would test primary support at $0.95/$0.96. Rising 63-day Twiggs Momentum suggests a primary up-trend.

Canadian Dollar/Aussie Dollar

The Aussie Dollar found support at $1.02 against the greenback. Expect a test of $1.04. Breakout would indicate $1.06, while respect would warn of a down-swing to parity. Recovery of 63-day Twiggs Momentum above zero suggests an up-trend.

Aussie Dollar/USD

The Australian Dollar found support against the yen at ¥79.50/¥80.00. Recovery above ¥83.50 would indicate a test of ¥88.00. Rising 63-day Twiggs Momentum suggests a primary up-trend. Reversal below ¥79.50 is unlikely, but would indicate another test of primary support at ¥74.

Aussie Dollar/Japanese Yen

He glanced about him to make sure we weren't overheard, leaned forward, and whispered, "He collects stamps." The family looked bewildered. "You mean he's a philatelist?" said Larry at length. "No, no, Master Larrys," said Spiro. "He's not one of them. He's a married man and he's gots two childrens."

~ Gerald Durrell, describing his childhood in Corfu.