Forex Technical Analyst Trader | Nov 29, 2015 01:26AM ET
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 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 deviation table
Last 3 months currency classification
The last 3 months currency classifications from a longer term perspective are provided for reference purposes. The necessary charts can be found in the previous article Weekly Currency Score Wk47 . The currencies are classified for the coming weeks as follows:
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 draw the first set of conclusions. These are given below the screenshot.
In essence it boils down to the 3 following lines of text:
Because the text above is quite abstract you can read below a more detailed description.
According to the Ranking and Rating list already published this weekend the following pair combinations look interesting:
We will fit each pair if possible in the right group here below and within each group also add the following abbrevations for the pair combinations:
A. -> SA = Strong Average
B. -> SW = Strong Weak
C. -> AW = Average Weak
Strong currencies
Average currencies
Weak currencies
The following table shows the deviations as mentioned in the description above. All the other currencies are within their classification range. In the next article of this weekend the "Forex Weekly Currency Score Difference" these currencies will be analyzed in more detail to see if there are interesting combinations with other currencies and if there are any overbought/oversold conditions.
A good foundation is provided for looking at the Weekly and Daily Technical analysis chart of a specific pair by using the (1)"Ranking and Rating list", published earlier this weekend, with the (2)above Weekly Currency Score analysis and together with the (3)"Currency score difference" table with the (4)"Top Forex pairs table" where the Bollinger Bands analysis is done on the interesting pairs.
When trading according to the FxTaTrader.com or the direct link to this article. Good luck in the coming week.
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