0
144
The
Currency Score analysis is one of the parameters used for the
Ranking and Rating list which was published earlier.
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 3 time frames, the monthly, weekly and daily. The result of the technical analysis are the 2 screenshots in this article showing the Currency Score and the Currency Score Difference.
The conclusion is:
According to the Ranking and Rating list already published this month
the following pair combinations look interesting.
The technical analysis is the most important issue to consider
before taking positions. The Monthly Chart is being analyzed. I prefer
the Bollinger Band for defining where a pair is in the chart. Once a
pair is outside a Bollinger Band it is in a strong trend which can
cause a strong pullback. Although this may be a good opportunity for
other analysts I avoid taking positions because of the possible
unexpected strong pullback. Positions are only opened inside the
Bollinger Band and this may be at the start of a possible trend or on a
good pullback in an existing trend.
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 month and
don't forget to check my weekly Forex "Strategy Review" 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.
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 3 time frames, the monthly, weekly and daily. The result of the technical analysis are the 2 screenshots in this article showing the Currency Score and the Currency Score Difference.
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Last 12 months currency classification
The last 12 months currency
classification from a longer term
perspective
are provided for reference
purposes. See for more information the article: Monthly Currency Score for Jan.
where
the charts are available. There are no changes since January and the
currencies are
classified for the coming months as follows:
- Strong: USD / NZD / GBP
- Average: CHF /CAD
- Weak: JPY / AUD / EUR
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Currency Score
For analyzing the best pairs to trade this classification is the first issue. When looking at the most recent score that is used for the coming period we can see in the screenshot below the following deviations:- The USD has a score of 5 and the NZD a score of 4. These are a strong currencies and they should have by preference a score of 6 or higher. They have a score at the moment of an average currency.
- The CAD has a score of 6 and the CHF a score of 8. These are average currencies and they should have by preference a score from 4 to 5. They have a score at the moment of a strong currency.
The conclusion is:
- Half of the currencies are at the right level when looking at the last 12 months currency classification except for the USD, NZD, CAD and CHF.
- There is a slight pullback at the moment for the USD and the NZD when looking at the market as a whole.
- There is an increase of momentum for the CAD and CHF which are getting stronger.
- The pairs that we may look at are all most probably trending except for the pairs containing the USD and the NZD which are most probably ranging.
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Currency
Score difference
- CHF/JPY with the GBP/AUD
- AUD/CHF with the GBP/JPY
- EUR/CHF with the GBP/AUD
- EUR/CHF with the GBP/JPY
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- The CHF/JPY is in an uptrend and within the Bollinger Band.
- The GBP/AUD is in an uptrend and within the Bollinger Band.
- The AUD/CHF is in a downtrend and within the Bollinger Band.
- The GBP/JPY is in an uptrend and within the Bollinger Band.
- The EUR/CHF is in a downtrend and within the Bollinger Band.
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