Forex Ranking, Rating And Score For Week 9 / 2017

The Top 10 of the Ranking and Rating list for the coming week shows the following stronger currencies being well represented for going long: AUD(3X) with the JPY(3X) followed by the NZD(2X) with the CAD(2X). The weaker currencies are the EUR(4X) with the GBP(4X)followed by the CHF(2X).
A nice combination for coming week may be e.g:

  • GBP/JPY with the  EUR/NZD
  • EUR/JPY with the GBP/AUD
  • EUR/AUD with the GBP/NZD

Some of the pairs in the list comply for a longer term trade based on the Technical Analysis (TA) of the Daily and Weekly chart. For the coming week, these seem to be: GBP/JPY, GBP/AUD, EUR/NZD, GBP/NZD, GBP/CAD and AUD/CHF. For more details read both of my articles where the relevant Charts and Tables are provided.

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Ranking and Rating list

Analysis based on TA charts for all the major currency pairs. All the relevant Time Frames will be analyzed and the ATR and Pip value will be set.

 

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For analyzing the best pairs to trade looking from a longer-term perspective the last 13 weeks Currency Classification can be used in support.
This was updated on 12 February 2017 and is provided here for reference purposes: 
Strong: USD, NZD, CAD. The preferred range is from 6 to 8.
Neutral: CHF, AUD. The preferred range is from 4 to 5.
Weak: JPY, EUR, GBP. The preferred range is from 1 to 3.

When comparing the 13 weeks 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 positions for a short period then 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.

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Currency Score Chart

The 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 shown below.

 

When comparing the 13 weeks 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. A good example at the moment is/are e.g. the AUD and JPY. Unless a clear opportunity based on the longer term is shown it seems best to be avoided.




 

 

Disclaimer:

Besides this article I also use the Forex ...

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