In this article I will provide my view on the EUR/GBP, AUD/USD and the EUR/NZD. These are the pairs that I am currently interested in or was interested in last week for trading with the Hybrid Grid strategy. I will pick one to analyse in more detail from the pairs that have not been discussed yet recently.
- All trades are based on specific rules according to the FxTaTrader Hybrid Grid strategy.
- All open positions can be viewed by clicking here.
This articles will provide:
- The weekly currency chart for the analyzed pair.
- The daily(timing) chart for the analyzed pair.
- Possible positions for the coming week and positions taken.
According to the TA Charts, the "Currency score" and the "Ranking & Rating list", the best pairs to trade are the NZD/JPY, USD/JPY, EUR/NZD, CHF/JPY, GBP/USD, AUD/JPY, EUR/USD and the CAD/JPY. See also my previous article of this weekend about the "Currency score".
There are some rules for taking positions according to the FxTaTrader Hybrid Grid Strategy. The strategy can open multiple positions of a currency pair but each currency may only be present once in the pairs chosen for trading. It means that not all the possible positions of this coming week can be opened. For more information see FxTaTrader Hybrid Grid Strategy. Another rule is that a pair outside the Bollinger Band in the Weekly chart is considered overbought/oversold. No positions are taken for these pairs which are in this case the JPY pairs. The preference for this coming week goes to the AUD/USD with the EUR/GBP.
Last week (pending) orders were placed for the EUR/GBP and the AUD/USD with loss 2x EUR/GBP and profit 1x AUD/USD.
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Open/pending positions of last week
EUR/GBP
This pair will be analyzed briefly, for more information read the article Review FxTaTrader Strategy Wk 39/40. Loss was made last week on 2 positions.
The pair looked interesting in the last few weeks for going short. There was also profit made in week 45. However the daily chart changed significant last week and the PSAR got hit. The stop loss got hit also because it is related to the PSAR position. The pull back of the pair is strong and although the uptrend is not yet convincing it is clear that the chances for going short are less compared to last weeks. The Weekly and Monthly chart are still clearly Bearish so any positions taken in the coming weeks will be a short position when the chances return.
- In the daily chart price is above the Ichimoku cloud.
- The MACD just entered into positive territory.
- The Parabolic SAR reversed and is now going long and also showing for the new positions the preferred pattern of higher stop loss on opening of new long and short positions.
Ranking and rating list Week 47
Rank: 28
Rating: =
Total outlook: Neutral
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AUD/USD
This pair will also be analyzed briefly, for more information read the article Review FxTaTrader Strategy Wk 45&46. The pair looks interesting in the last few weeks for going short. However, the pair had a strong pull back and in the 4H chart it is above the Ichimoku cloud and the MACD is in positive territory. The momentum for the short term has worsen a bit for this reason. The pair is still meeting all the conditions in the Daily chart but the PSAR got hit. A position has been placed around this area at 0.87437 and the stop loss for both positions is 1/4 Weekly ATR above this at 88200. There is a Fibo 38.2% Fibo level at 0.8770 measured from the recent top at 0.8911 and bottom at 0.8540 where the pair retreated last Friday.With the new recent low made in week 45 and the indicators in the Daily chart being bearish it seems as the recent pull back will hold and the downtrend will resume any moment.
- In the daily chart the Ichimoku is meeting all the conditions. Price is however above both MA's.
- The MACD is in negative territory. It is consolidating and according to the Histogram it is weakining.
- The Parabolic SAR is long but it is showing the preferred pattern of lower stop loss on opening of new long and short positions.
Ranking and rating list Week 47
Rank: 27
Rating: =
Total outlook: Down
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Possible positions for coming week
EUR/NZD
This pair will be analyzed in more detail. The situation compared to the last weeks has improved and the pair is interesting for the Hybrid Grid strategy. At the moment the pair is in the middle of the Bollinger Band range in the Weekly(decision) chart after testing the Upper Band for several weeks. All other conditions in the Weekly(decision) chart are looking good for going short.
- As can be seen in the Currency Score chart in my previous article of this weekend Forex Weekly Currency Score Wk 47, the NZD is having a score of 8 and the EUR a score of 3. With a Currency score difference of 5 it is an interesting pair for going short.
- The rank in the Ranking and Rating list in the last weeks also shows that the pair is attractive for taking short positions. In the recent list of this weekend Forex Ranking & Rating Wk 47the pair has a rank of 4. This list is used as additional information besides the Currency score and the Technical analysis charts.
- Besides the general information mentioned the outlook in the TA charts also makes it an attractive opportunity.
Ranking and rating list Week 47
Rank: 4
Rating: - -
Weekly Currency score: Down
Based on the currency score the pair looked interesting in the last 3 months. The NZD is an average performing currency from a longer term view and currently having a score of 8. The EUR is a weaker currency from a longer term perspective and is still remaining at this area with a score of 3. The NZD is for now an average performing currency but if the scores remain same high in the coming weeks it will be a stronger currency. The EUR is no more as low as it was in the period of May to August but it is not recovering strong enough and it remains a weaker currency. Based solely on this information the pair looks interesting for going short.
Monthly chart: Down
- On the monthly(context) chart the indicators are looking reasonable for going short.
- The Ichimoku is meeting almost all the conditions.
- The MACD is in negative area but consolidating according to the histogram.
- The Parabolic SAR is short and showing the preferred pattern of lower stop loss on opening of new long and short positions.
- Since the monthly chart is used to get the context where that pair is in for the long term the indicators are looking fine because they are showing reasonable strength in the current downtrend.
Weekly chart: Down
- On the weekly(decision) chart the indicators are looking reasonable for going short.
- The Ichimoku is meeting all the conditions.
- The MACD is in positive area but weakining.
- The Parabolic SAR is short and showing the preferred pattern of lower stop loss on opening of new long and short positions. There was a switch in the week of 5 Sept. This is considered a false signal.
Daily chart: Down
- On the daily(timing) chart the indicators are looking strong for going short.
- The Ichimoku is meeting almost all the conditions. By preference the MA's should cross below the cloud.
- The MACD is in negative area gaining strength..
- The Parabolic SAR is short and showing the preferred pattern of lower stop loss on opening of new long and short positions.
Total outlook: Down
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Although the explanation may seem simple and clear there is always risk involved. I added a disclaimer to my blog for this purpose. If you 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 week and don't forget to check my weekly Forex "Ranking and Rating list" and the "Currency Score".
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