FX Review FxTaTrader Weekly Strategy Week 06 / Sunday 08-Feb-2015

8 February 2015, 19:58
Forex Technical Analyst Trader
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In this article I will provide my view on the EUR/GBP, AUD/USD and the GBP/CAD. These are the pairs that I am currently interested in or was interested in last week for trading with the FxTaTrader weekly strategy. I will pick one to analyse in more detail from the pairs that have not been discussed yet recently.

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Open/pending positions of last week

AUD/USD

This pair will be analyzed briefly, for more information read the article Weekly Review Strategy Wk04 where the pair was tipped for going short. In week 4 the pullback offered a good opportunity and 2 positions have been opened. Profit was made on 1 positon of 1/2 Weekly ATR (88 pips) and another position remains open with a trailing stop. At the moment this open position has gained 163 pips.
  • In the weekly chart the Ichimoku is meeting all the conditions.
  • The MACD is in negative area and gaining strength.
  • The Parabolic SAR is short and showing the preferred pattern of lower stop loss on opening of new long and short positions.

Ranking and rating list Week 06
Rank: 6
Rating: - - -

Total outlook: Down

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EUR/GBP

This pair will be analyzed briefly, for more information read the article Weekly Review Strategy Wk05 where the pair was tipped for going short. The pair broke through the bottom of 0,7750 that was there since the year 2008. Last week a good pullback took place but the entry was missed with 10 pips so no positions are opened yet. Also for this pair an additional position will be opened with a trailing stop, like with the AUD/USD. If the downtrend resumes it will go outside of the Bollinger Band and the additional position will remain open until the downtrend slows down and the pair comes back within the Bollinger Band again. This way advantage can be taken of the whole trend completing besides the initial entries with profit targets of 1/4 and 1/2 Weekly ATR which are placed within the Bollinger Band at the start of a trend.
  • In the weekly chart the Ichimoku is meeting all the conditions.
  • The MACD is in negative area and gaining strength.
  • The Parabolic SAR is short and showing the preferred pattern of lower stop loss on opening of new long and short positions.
Ranking and rating list Week 06
Rank: 8
Rating: - -

Total outlook: Down

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Possible positions for coming week

GBP/CAD

This pair will be analyzed in detail. The pair broke through the top of 1,8663 that was there since February 2014. Last week a good pullback took place towards this previous top and this seems like a test of resistance becoming support. The pair is consolidating at the moment in the Daily and 4 hour chart. A good opportunity may be when the pair tests the new support line again. Positions will only be opened if no positions are open for the EUR/GBP which is the other interesting GBP pair for the coming week.
  • As can be seen in the Currency Score chart in my previous article of this weekend the GBP is having a score of 6 and the CAD a score of 3. These are both average performers but the GBP looks like it is getting stronger. The Currency Score difference should be by preference 4 or higher and it is now only 3.
  • In the current Ranking and Rating list of this weekend the pair has a rank of 12. 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 Week 06
Rank: 12
Rating: +

Weekly Currency score: Up
Based on the currency score the pair looked interesting in the last 3 months. The GBP is an average performer from a longer term perspective and currently has a score of 6. The CAD is an average performer also from a longer term perspective and currently has a score of 3. With a Currency score difference of 3 and both currencies classified as an average currency the pair is not yet interesting enough but it is worth to monitor for any opportunity coming up. The GBP seems to be gaining strength lately as can be seen in the chart also.


Week 06 08-Feb-2015 FxTaTrader.com Forex GBPCAD Currency Score


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Monthly chart: Up
  • On the monthly(context) chart the indicators are looking strong for going long.
  • The Ichimoku is meeting all the conditions.
  • The MACD is in positive area and gaining strength.
  • The Parabolic SAR is long and showing the preferred pattern of higher stop loss on opening of new long and short positions.
  • Since the monthly chart is used to get the context how that pair is developing for the long term the indicators are looking fine because they are showing strength in the current uptrend.

Weekly chart: Up
  • On the weekly(decision) chart the indicators are looking strong for going long.
  • The Ichimoku is meeting all the conditions.
  • The MACD is in positive area and gaining strength.
  • The Parabolic SAR is long and will start showing the preferred pattern of higher stop loss on opening of new long and short positions because of the recent high made.

Daily chart: Up
  • On the daily(timing) chart the indicators are looking reasonable for going long.
  • The Ichimoku is meeting all the conditions.
  • The MACD is in positive area but consolidating.
  • The Parabolic SAR is short but showing the preferred pattern of higher stop loss on opening of new long and short positions.

 Total outlook: Up

FxTaTrader.com GBPCAD Weekly Week 05 08-Feb-2015

GBP/CAD Weekly chart


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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".

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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.
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