Forex Ranking, Rating And Score For November 2016
Forex Technical Analyst Trader | Nov 29, 2016 12:20PM ET
The Ranking and Rating list for the coming month shows the following stronger currencies being well represented for going long: USD(5X) followed by the NZD(2X). The weaker currencies are the EUR(4X) followed by the JPY(2X) with the CAD(2X).
A nice combination for coming month may be e.g:
- EUR/USD with the NZD/JPY
- USD/JPY with the EUR/NZD
- USD/CAD with the NZD/JPY
Some of the pairs in the top 10 comply for a longer term trade based on the Technical Analysis (TA) of the weekly and monthly chart. For the coming month these seem to be: GBP/USD, EUR/USD, EUR/NZD, NZD/JPY, USD/CAD and USD/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. Good luck to all. No advice, just info. Every month the Forex ranking rating list will be prepared around the change of the month. 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 12 months Currency Classification can be used in support.
This was updated on 30 September 2016 and is provided here for reference purposes:
Strong: USD, JPY, NZD. The preferred range is from 6 to 8.
Neutral: AUD, CHF. The preferred range is from 4 to 5.
Weak: EUR, GBP, CAD. The preferred range is from 1 to 3.
When comparing the 12 months 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 traded in the daily 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 3 time frames: the monthly, weekly and daily. The result of the technical analysis is the screenshot here below.
When comparing the 12 months 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 e.g. the JPY. Unless a clear opportunity based on the longer term is shown it seems best to be avoided.
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