Forex Ranking And Rating, Week 13
Forex Technical Analyst Trader | Mar 27, 2016 04:01AM ET
This is the article "Forex Ranking and Rating list" for the coming week. The article "Forex Strength and Comparison" has also been published this weekend.
When looking at the Top 10 in the Weekly Ranking and Rating list we can see that for the coming week the following stronger currencies are well represented for going long: CHF(3X) with the JPY(3X) followed by the AUD(2X). The weaker currencies are the GBP(5X) followed by the NZD(3X) with the CAD(2X).
A nice combination for coming week may be e.g:
- GBP/JPY with the AUD/NZD
- GBP/CHF with the NZD/CHF
- GBP/AUD with the CAD/CHF
- NZD/JPY with the CAD/JPY
These are just a few examples and many other combinations are possible. The mentioned pair combinations can be traded at the same time according to the rules of the FxTaTrader strategy because these are all different currencies. By not trading the same currency in the same direction more than once in the same time frame, you may have better chances with lower risk.
Ranking and Rating List for Week 13 / March 27, 2016
Analysis based on TA charts for all the major currency pairs. Good luck to all. No advice, just info. Every week the forex ranking rating list will be prepared over the weekend. All the relevant time frames will be analyzed and the ATR and pip value will be set.
For analyzing the best pairs to trade looking from a longer-term perspective, the last 3 months currency classification can be used as support. This is updated over the weekend and provided here for reference purposes only:
Strong: USD / JPY / CHF. The preferred range is from 6 to 8.
Average: EUR, AUD, NZD. The preferred range is from 3 to 5.
Weak: GBP, CAD. The preferred range is from 1 to 2.
The charts are provided in the following article: "Forex Currency Score Classification for Wk13 ".
When comparing the 3 months currency classification with the pairs mentioned in the ranking list above, some would then be less interesting. On the other hand, these pairs are on the top of the list partly also because of their volatility. It seems best then to take postitions for a short-term 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 for Week 13 / March 27, 2016
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: monthly, weekly, daily and 4-hour. The result of the technical analysis is the screenshot here below.
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When comparing the 3 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. These currencies are at the moment the USD, NZD and the CAD. Unless they offer a clear opportunity based on the longer-term, they are avoided.
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