When looking at the Top 10 in the Weekly Ranking and Rating list we can see that for the coming week the following stronger currencies are well represented for going long: CHF(3X) with the JPY(3X) followed by the AUD(2X). The weaker currencies are the GBP(5X) followed by the NZD(3X) with the CAD(2X).
A nice combination for coming week may be e.g:
- GBP/JPY with the AUD/NZD
- GBP/CHF with the NZD/CHF
- GBP/AUD with the CAD/CHF
- NZD/JPY with the CAD/JPY
Ranking and Rating list for Week 13 / 27-March-2016Analysis based on TA charts for all the major currency pairs. Good luck to all. No advice, just info. Every week the Forex ranking rating list will be prepared in the weekend. All the relevant Time Frames will be analyzed and the ATR and Pip value will be set.
This is updated on this weekend and is provided here for reference purposes:
Strong: USD / JPY / CHF. The preferred range is from 6 to 8.
Average: EUR, AUD, NZD. The preferred range is from 3 to 5.
Weak: GBP, CAD. The preferred range is from 1 to 2.
The charts are provided in the following article: "Forex Currency Score Classification for Wk13".
When comparing the 3 months currency classification with the pairs mentioned in the Ranking list above some would then be less interesting. On the other hand these pairs are on the top of the list partly also because of their volatility. It seems then best to take postitions for a short term and take advantage of the high price movements.
With the FxTaTrader Strategy these pairs are not traded because these would be trades in the 4 Hour chart or in a lower Time Frame. Nevertheless they may offer good chances for the short term trader.
Currency Score for Week 13 / 27-March-2016The Currency Score analysis is one of the parameters used for the Ranking and Rating list which is published also in this article. The Currency Score is 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 screenshot here below.
When comparing the 3 months currency classification with the recent Currency Score, as provided in the image above, we can determine the deviations. In the article "Forex Strength and Comparison" this is analyzed in more detail. Currencies with a high deviation seem less interesting to trade because they are less predictable. These currencies are at the moment e.g. the USD, NZD and the CAD. Unless they offer a clear opportunity based on the longer term they are avoided.
With the FxTaTrader Strategy these pairs are not traded because they may be trades in the 4 Hour chart or a lower Time Frame. Nevertheless they may offer good chances for the short term trader. In the article "Forex Strength and Comparison" we will look in more detail at the interesting pairs from a longer term perspective for trading in the Daily and Weekly chart. We will use the information from this article and analyze it further in more detail.
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.