Momentum Scorecard: EUR/USD Intraday Bias Remains Skewed Higher
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TREND IN FOCUS: EURUSD (H4)
- The EURUSD may be breaking out of a Symmetrical Triangle consolidation amidst a Bull Flag, which I noted yesterday in the DailyFX Real Time News feed could see the pair trade into 1.3256/71 before pausing on the way towards 1.3415/44.
- Today, the pair has peaked at 1.3254, but the sustained uptrend in price despite consolidation/pullback in the H4 Slow Stochastics suggests that dips should be bought.
- The H4 ascending channel that has guided price since the July 18 low remains in place; 1.3200/05 is support; failure could see price down to 1.3157 (38.2% Fib April low to June high).
*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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