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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
Forex ranking and rating list.
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.
The NZD was a weak currency but is very strong lately and is now classified as an average currency.
For now the average classification contains 4 currencies while the other classifications have only 2 currencies.
Strong currencies
According to the Ranking and Rating list already published this weekend
the following pair combinations look interesting:
![Weekly_Wk45_20151101_FxTaTrader_CurrencyScore_Difference Weekly_Wk45_20151101_FxTaTrader_CurrencyScore_Difference](https://c.mql5.com/6/697/Weekly_Wk45_20151101_FxTaTrader_CurrencyScore_Difference.png)
The technical analysis is the most important issue to consider
before taking positions. The Weekly Chart is analyzed. I prefer
the Bollinger Band for defining where a pair is in the chart. Once a
pair is outside a Bollinger Band it is in a strong trend which can
cause a strong pullback. Although this may be a good opportunity for
other analysts I avoid taking positions because of the possible
unexpected strong pullback. Trades are only opened inside the
Bollinger Band and this may be at the start of a possible trend or on a
good pullback in an existing trend.
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 week and
don't forget to check my weekly Forex "Strategy Review" and the
"Ranking and Rating list".
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: GBP / USD. The preferred range is from 7 to 8.
- Average: CHF / EUR / JPY / NZD. The preferred range is from 3 to 6.
- Weak: AUD / CAD. The preferred range is from 1 to 2.
The NZD was a weak currency but is very strong lately and is now classified as an average currency.
For now the average classification contains 4 currencies while the other classifications have only 2 currencies.
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Currency Score
For analyzing the best pairs to trade the last 3 months currency 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 deviations and we can come to certain conclusions. These are explained below the screenshot.______________________________________
- No deviations with the the strong currencies. The GBP and USD are within their range offering opportunities to be trades against the average and weak currencies.
- There are no pullbacks and any pair with momentum seems like a good opportunity.
- There is a deviation for the EUR with a score of 2. This is an average currency and it should have by preference a score from 3 to 6.
- There is a decrease of momentum for the EUR which is getting weaker.
- The EUR has a score at the moment of a weak currency and it seems best to be traded going short against the strong currencies.
- There are no other deviations meaning that the other average currencies; CHF, JPY and NZD seems best for trading, depending on the opportunities coming around,.in the following ways:
- going short against the strong currencies
- going long against the weak currencies
- There is a deviation for the CAD with a score of 4. This is a weak currency and it should have by preference a score from 1 to 2.
- There is most probably a pullback for the CAD when looking at the market as a whole, the downtrend has lost momentum.
- The CAD has a score at the moment of an average currency and it seems best to be traded going short against the strong currencies.
- There are no other deviations meaning that the other weak currency the AUD seems best trading, depending on the opportunities coming around,.in the following ways:
- going short against the strong currencies
- going short against the average currencies
- The weak currencies against the EUR are most probably ranging and there are most probably no opportunities in the Top 10 of this week "Ranking and Rating list".
- The CAD may offer a good opportunity to step in. However, it is important to determine if the specific pair is indeed having a pullback. For that reason it is good to see the momentum returning in that pair, check the "Ranking and Rating list". If there is momentum then check also the"Currency score difference" table.
- All the other pairs may be in a trend when complying to the "Currency score difference" table which can be seen here below. There are most probably opportunities in the Top 10 of this week "Ranking and Rating list".
- By using the (1)"Ranking and Rating list" with the (2)above Weekly Currency Score analysis and the (3)"Currency score difference" table with the (4)Bollinger Band analysis provided here below a good foundation is provided for looking at the Weekly and Daily Technical analysis chart of a specific pair.
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Currency
Score difference
- GBP/AUD with the USD/CHF
- EUR/GBP with the AUD/USD
- GBP/CHF with the EUR/USD
![Weekly_Wk45_20151101_FxTaTrader_CurrencyScore_Difference Weekly_Wk45_20151101_FxTaTrader_CurrencyScore_Difference](https://c.mql5.com/6/697/Weekly_Wk45_20151101_FxTaTrader_CurrencyScore_Difference.png)
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- The GBP/AUD is in an uptrend and within the Bollinger Band.
- The USD/CHF is in an uptrend and within the Bollinger Band.
- The EUR/GBP is in a downtrend and within the Bollinger Band.
- The AUD/USD is in a downtrend and within the Bollinger Band.
- The GBP/CHF is in an uptrend and within the Bollinger Band.
- The EUR/USD is in a downtrend and within the Bollinger Band.
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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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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.