The Top 10 of the Ranking and Rating list for the coming week shows the following stronger currencies being well represented for going long:Â the EUR(3X) with the USD(3X) and the CAD(3X). The weaker currencies are the NZD(4X) followed by the AUD(3X) and the GBP(2X).
By diversifying a nice combination can be traded in the coming week like e.g.:
- EUR/NZD with the GBP/USD
- NZD/USD with the EUR/AUD
Ranking and Rating list
Analysis based on TA charts for all the major currency pairs.Â
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 17 September 2017 and is provided here for reference purposes:
Strong: EUR, AUD and CAD. The preferred range is from 6 to 8.
Neutral: NZD and CHF. The preferred range is 4 to 5.
Weak: USD, JPY and 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.
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 the screenshot below.
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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.
