Trade FOREX with FXCM

  • Award-Winning Platform
  • 24/7 Customer Support
  • Trade Directly on Charts
  • Free $50K Practice Account

Resources

Momentum Scorecard: Euro and Sterling to Outperform versus AUD

By , Currency Analyst
22 July 2013 10:30 GMT
Momentum_Scorecard_Euro_and_Sterling_to_Outperform_versus_AUD_body_Picture_1.png, Momentum Scorecard: Euro and Sterling to Outperform versus AUD

Want to add the Moving Average Dashboard to your charts?

Download it free on FXCMApps.com.

TREND IN FOCUS: EURAUD (H1)

Momentum_Scorecard_Euro_and_Sterling_to_Outperform_versus_AUD_body_x0000_i1028.png, Momentum Scorecard: Euro and Sterling to Outperform versus AUD

- The European currencies look to take advantage of the Australian Dollar; both the EURAUD and the GBPAUD have strong bullish scores of +4.00 and +3.71, respectively.

- Such high composite scores indicate strong, sustained bull trends on both intraday and intraweek bases.

- The EURAUD has broken out of a Bull Flag/Symmetrical Triangle today, eclipsing last week’s swing highs near A$1.4330/35.

- Full time frame continuity and a bullish cross of the SMA structure on the H1 timeframe points to further gains.

- The H1 Slow Stochastics are in oversold territory and starting to compress; a turn lower would offer an opportunity to buy a dip for another run at the July highs at 1.4475/80; support is eyed at 1.4285/305.

Read more: Euro Stability in the Face of Financial Trouble a Sign of Strength?

*Trend definitions: “uptrend” is defined as 8-MA>21-MA>55-MA; “downtrend” is defined as 8-MA<21-MA<55-MA; a “trendless” market occurs when continuity is absent.

*Scoring methodology: there are seven time frames, ascending from m15 (15-minutes) to W1 (one-week). In ascending order, each pair is assigned a value from -7 to +7 based on the trend apparent on the specified time frame (I.E. a m15 uptrend equals +1, whereas a H1 downtrend equals -3). If neither an uptrend nor downtrend is present, the trendless timeframe receives a score of 0. These points are totaled and the average is reported on the right. The strongest uptrend would achieve a score of +4.00, while the strongest downtrend would achieve a score of -4.00.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

22 July 2013 10:30 GMT