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Momentum Scorecard: EUR/CAD Continues Push Higher

Momentum_Scorecard_EURCAD_Continues_Push_Higher_body_Picture_1.png, Momentum Scorecard: EUR/CAD Continues Push Higher

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TREND IN FOCUS: EURCAD (D1 Chart)

– EURCAD has a perfect momentum score of +4.00, indicating bullish full time frame continuity (all timeframes currently examined have a bullish 8-/21-/55-SMA structure).

– Price has posted a daily close above all three 8-, 21-, and 55-SMAs since May 21.

– The recent consolidation under C$1.3700 and the 8-SMA has yielded to a Bullish Ascending Triangle, pointing to new highs.

– The next leg higher may be beginning as daily Slow Stochastics (5,3,3) have turned higher, issuing a buy signal today.

– Weekly close 1.3620/25 would be first close above 200-SMA since December 2009.

*Trend definitions: “uptrend” is defined as 8-MA21-MA55-MA; “downtrend” is defined as 8-MA21-MA55-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

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