FX Review FxTaTrader Monthly Strategy January / Sunday 18-Jan-2015

There will be new articles based on the Monthly strategy and the evaluation of the strategy will also be discussed.
For this reason some pages on the website have been updated.
The following pages have been updated:
FxTaTrader Strategy
FxTaTrader Forex Ranking & Rating list
Stop loss settings

In this article I will provide my view on the EUR/NZD. This is the pair that I am currently interested in for this month or was interested in last month for trading with the FxTaTrader strategy.

- All trades are based on specific rules according to the strategy.
- For the performance and closed positions click here.

This article will provide:

• The monthly currency chart for the analyzed pair.
• The monthly(decision) TA chart for the analyzed pair.
• A Technical analysis for the analyzed pair of the Monthly and Weekly chart.
• Possible positions for the coming month and positions taken.

Open/pending positions of this month

EUR/NZD

This pair will be analyzed in detail. The situation compared to the last months has improved and the pair is interesting for the FxTaTrader strategy. The pair broke through the lows of the previous months and is clearly in a downtrend in the Weekly and Monthly charts. profit was made on 2 positions during this month and 2 other postions remain open with a trailing stop. Although the event with the CHF last week is a good reason for not trading next week the CHF and EUR with the Weekly strategy, the high volatility is of less influence on the Monthly strategy.

• As can be seen in the Currency Score chart in my previous article Monthy Currency Score January, the NZD is having a score of 7 and the EUR a score of 3. With a Currency score difference of 4 and the NZD having a classification of a stronger currency while the EUR is a weaker currency it is an interesting pair in the coming months for going short.
• The position in the Ranking and Rating list this month also shows that the pair is attractive for taking short positions. In the list of this month Forex Ranking & Rating January the pair has a rank of 2. This list is used as additional information besides the Currency score and the Technical analysis charts.
• Besides the general information mentioned the outlook in the TA charts also makes it an attractive opportunity.

Ranking and rating list January
Rank: 2
Rating: - - -

Monthly Currency score: Down
Based on the currency score the pair looked interesting in the last 12 months. The NZD is a strong currency from a longer term perspective and currently having a currency score of 7. The EUR is a weaker currency from a longer term perspective and currently having a score of 3. Based solely on this information the pair does look interesting for going short in the coming month.

Monthly chart: Down

• On the monthly(decision) chart the indicators are looking strong for going short.
• The Ichimoku is meeting all the conditions.
• The MACD is in negative area and regaining strength.
• The Parabolic SAR is short and showing the preferred pattern of lower stop loss on opening of new long and short positions.

Weekly chart: Down

• On the weekly(timing) chart the indicators are looking strong for going short.
• The Ichimoku is meeting all the conditions. The MA's crossed just a few weeks ago and it happened below the cloud.
• The MACD is in negative area gaining strength.
• The Parabolic SAR is short and showing the preferred pattern of lower stop loss on opening of new long and short positions.

Total outlook: Down

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Although the explanation may seem simple and clear there is always risk involved. I added a disclaimer to my blog for this purpose. 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 and don't forget to check my weekly Forex "Ranking and Rating list" and the "Currency Score".



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.