When looking at the Top 10 in the Monthly Ranking and Rating list we can see that for the coming month the following stronger currencies are well represented for going long: JPY(6X) followed by the GBP(4X) and the USD(2X). The weaker currencies are the AUD(3X) with the CHF(3X) followed by the NZD(2X).
A nice combination for coming month may be e.g:
- AUD/JPY with the GBP/NZD
- AUD/USD with the GBP/CHF
- GBP/AUD with the USD/CHF
- CHF/JPY with the AUD/USD
- NZD/JPY with the GBP/AUD
When trading with more than 2 micro lots it is a good idea to have a diversification and depending on your bias it may offer opportunities by going long or short on a specific currency trading it against different other currencies.
Ranking and Rating list for Month JuneAnalysis based on TA charts for all the major currency pairs. Good luck to all. No advice, just info. Every month the Forex ranking rating list will be prepared as the months change. All the relevant Time Frames will be analyzed and the ATR and Pip value will be set.
This was updated on 3 January 2016 and is provided here for reference purposes:
Strong: USD / GBP / CHF. The preferred range is from 6 to 8.
Average: NZD, JPY. The preferred range is from 4 to 5.
Weak: EUR, AUD, CAD. The preferred range is from 1 to 3.
The charts were provided in the article: "Forex Currency Score Classification for January"
When comparing the 12 months Currency Classification with the pairs mentioned in the Ranking List above some would then become less interesting. On the other hand these pairs are at the top of the list partly also because of their volatility. It seems best to take postitions for a shorter term then and take advantage of the high price movements.
With the Monthly FxTaTrader Strategy these pairs are not traded because these would be trades in the Daily chart or in a lower Time Frame. Nevertheless they may offer good chances for the short term trader.
Currency Score for Month JuneThe 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 3 Time Frames: the monthly, weekly and the daily. The result of the technical analysis is the screenshot here below.
When comparing the 12 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 GBP, CAD and the CHF. Unless these currencies offer a clear opportunity based on the longer term they are avoided.
Besides this article I also use the Forex "Strength and Comparison" which is also available once a month on my blog at FxTaTrader.com. In the article "Ranking, Rating and Score" we look in more detail at the relative position of the currencies and pairs. We will look in more detail at the interesting pairs from a longer term perspective for trading in the Weekly and Monthly chart. We will use the information from this article, "Ranking, Rating and Score", and analyze it further in more detail.
It is recommended to read the page Currency score explained and Models in practice for a better understanding of the article. 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.
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.