It is recommended to read the page Currency score explained and Models in practice for a better understanding of the article. This article will provide my analysis on the 8 major currencies based on the technical analysis charts using the MACD and Ichimoku indicator on 4 time frames: the monthly, weekly, daily and 4 hours. The result of the technical analysis is the 2 screenshots in this article showing the Currency Score Difference and the Top Forex pairs table.
In the previous article the analysis was made for the Currency Score and a summary of the results are here below:
- The CAD has a score at the moment of a weak currency and it seems best for trading going short against the strong currencies.
- The JPY has a score at the moment of a strong currency and it seems best for trading going long against the weak currencies
- There is a pullback for the GBP, CHF and EUR.
- The other currencies, the USD, NZD and the AUD, are within their range.
- Most of the interesting pairs from the "Ranking and Rating list" do also look interesting according to the "Currency Score" analysis from the previous article except for the CAD/JPY and the NZD/CAD .
Remark: The CAD/JPY and the NZD/CAD are pairs having average currencies traded against each other but depending on the Currency Score Difference it appears to be an interesting pair.
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Currency
Score difference
- USD/CAD with the AUD/JPY
- NZD/CAD with the AUD/USD
- CAD/JPY with the AUD/USD
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The following table shows the location related to the Bollinger Bands of each interesting pair analyzed and approved in all the previous analyses.
- The pairs located within the Bollinger Bands and at the Bollinger Bands have the best opportunities because the chance of a pullback is the lowest.
- Any pair slightly above or below the Bollinger Bands may be inside when trading starts again. These pairs have to be checked on opening of the market.
- Also, any pair outside the Bollinger Bands may be interesting when trading starts because of a pullback in the pair.
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When trading according to the FxTaTrader Strategy some rules are in place. For more information see the page on my blog FxTaTrader Strategy. Depending on the opportunities that may come up the decision to trade a currency may become more obvious at that moment. If you would like to use this article then mention the source by providing the URL FxTaTrader.com or the direct link to this article. Good luck in the coming week.
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DISCLAIMER: The articles are my personal opinion, not recommendations, FX trading is risky and not suitable for everyone.The content is for educational purposes only and is aimed solely for the use by ‘experienced’ traders in the FOREX market as the contents are intended to be understood by professional users who are fully aware of the inherent risks in forex trading. The content is for 'Forex Trading Journal' purpose only. Nothing should be construed as recommendation to purchase any financial instruments. The choice and risk is always yours. Thank you.