The
Currency Score analysis is one of the parameters used for the
Ranking and Rating list which was published earlier this weekend.
Besides this analysis and the corresponding chart I also provide the
weekly analysis on my strategy
and the Forex ranking and rating list which is available 3 times a week
on this blog.
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 and the Currency Score Difference.
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Last 3 months currency classification
The last 3 months currency
classification from a longer term
perspective
are provided for reference
purposes. There
are some changes and the new classification is provided here
with
the necessary charts which can be found at the bottom of this article.
The
currencies are
classified for the coming weeks as follows:
- Strong: USD / CHF / GBP. The preferred range is from 6 to 8.
- Average: NZD / CAD. The preferred range is from 4 to 5.
- Weak: EUR / JPY / AUD. The preferred range is from 1 to 3.
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Currency Score
- The NZD has a score of 2. This is an average currency and it should have by preference a score from 4 to 5. It has a score at the moment of a weak currency..
- The EUR has a score of 4. This is a weak currency and it should have by preference a score from 1 or 3. It has a score at the moment of an average currency.
- Most currencies are at the right level when looking at the last 3 months currency classification. Only the NZD the EUR are not at the right level.
- There is a strong pullback at the moment for the NZD when looking at the market as a whole. This caused the currency to be qualified as an average currency.
- There is a light pullback for the EUR when looking at the market as a whole.
- There is an increase of momentum for the GBP that is getting stronger. This caused the GBP to be qualified as a strong currency.
- The pairs that we may look at are all most
probably trending except for the pairs with the NZD and EUR
which are
most probably ranging.
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Currency
Score difference
- AUD/CHF with the GBP/JPY
- GBP/AUD with the CHF/JPY
- AUD/USD with the GBP/JPY
- AUD/USD with the CHF/JPY
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- The AUD/CHF is in a downtrend and within the Bollinger Band.
- The GBP/JPY is in an uptrend and at the Bollinger Band.
- The GBP/AUD is in an uptrend and within the Bollinger Band.
- The CHF/JPY is in an uptrend and within the Bollinger Band.
- The AUD/USD is in a downtrend and within the Bollinger Band.
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.
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Last 3 months currency classification charts
Here below are the charts providing the Currency classifications for reference purposes. There are three charts showing resp. the stronger, average and weaker currencies.
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