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. 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 months as follows:
- Strong: CHF / GBP / USD. The preferred range is from 6 to 8.
- Average: NZD /CAD. The preferred range is from 4 to 5.
- Weak: AUD / JPY / EUR. The preferred range is from 1 to 3.
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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 NZD has a score of 3. 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.
The conclusion is:
- 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 CHF that is getting stronger. This caused the CHF 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
- GBP/AUD with the EUR/USD
- AUD/CHF with the GBP/JPY
- CHF/JPY with the AUD/USD
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- The GBP/AUD is in an uptrend and at the the Bollinger Band.
- The EUR/USD is in a downtrend 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 at the Bollinger Band.
- The CHF/JPY is in an uptrend and at the Bollinger Band.
- The AUD/CHF is in a downtrend and within the Bollinger Band.
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Last 12 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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