Momentum Scorecard: Euro and Sterling to Outperform versus AUD
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TREND IN FOCUS: EURAUD (H1)
- 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.
*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.