Momentum Scorecard: Euro is Weak, but British Pound is Weaker
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TREND IN FOCUS: GBPCAD (D1)
- The GBPCAD score has shifted bearish rapidly, now at -2.14, mostly thanks to new BoE Governor Carney and yesterday’s dovish shift in monetary policy.
- The GBPCAD sits at a confluence of support at C$1.5775/80, in the form of the 55-SMA and the ascending trendline off of the May 13 and May 22 lows.
- The daily Slow Stochastic Oscillator (5,3,3) has issued a sell signal today, despite just recently coming off of oversold conditions earlier this week.
- Daily RSI (14) has consequently dropped to its lowest level since May 16; a break of 1.5775/80 eyes channel support at 1.5680/700, off of the May 4 and 13 lows.
Read more: GBPCAD: Stay Away from Carney!
*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
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.