Forex Trading This Week
Forex Technical Analyst Trader | Nov 17, 2014 12:05AM ET
In this article I will provide my view on the EUR/GBP, AUD/USD and the EUR/NZD. These are the pairs that I am currently interested in or was interested in last week for trading with the clicking here .
This articles will provide:
- The weekly currency chart for the analyzed pair.
- The daily(timing) chart for the analyzed pair.
- Possible positions for the coming week and positions taken.
According to the TA Charts, the "Currency score" and the "Ranking & Rating list", the best pairs to trade are the NZD/JPY, USD/JPY, EUR/NZD, CHF/JPY, GBP/USD, AUD/JPY, EUR/USD and the CAD/JPY. See also my previous article of this weekend about the "Currency score".
There are some rules for taking positions according to the FxTaTrader Hybrid Grid Strategy. The strategy can open multiple positions of a currency pair but each currency may only be present once in the pairs chosen for trading. It means that not all the possible positions of this coming week can be opened. For more information see FxTaTrader Hybrid Grid Strategy . Another rule is that a pair outside the Bollinger Band in the Weekly chart is considered overbought/oversold. No positions are taken for these pairs which are in this case the JPY pairs. The preference for this coming week goes to the AUD/USD with the EUR/GBP.
Last week (pending) orders were placed for the EUR/GBP and the AUD/USD with loss 2x EUR/GBP and profit 1x AUD/USD.
EUR/GBP
This pair will be analyzed briefly, for more information read the article Review FxTaTrader Strategy Wk 39/40 . Loss was made last week on 2 positions.
The pair looked interesting in the last few weeks for going short. There was also profit made in week 45. However the daily chart changed significantly last week and the PSAR got hit. The stop loss got hit also because it is related to the PSAR position. The pull back of the pair is strong and although the uptrend is not yet convincing it is clear that the chances for going short are less compared to last weeks. The Weekly and Monthly chart are still clearly Bearish so if any positions will be taken in the coming weeks these will be short positions.
- In the daily chart price is above the Ichimoku cloud.
- The MACD just entered into positive territory.
- The Parabolic SAR reversed and is now going long and also showing for the new positions the preferred pattern of higher stop loss on opening of new long and short positions.
Ranking and rating list Week 47
Rank: 28
Rating: =
Total outlook: Neutral
AUD/USD
This pair will also be analyzed briefly, for more information read the article Review FxTaTrader Strategy Wk 45&46 . The pair looks interesting in the last few weeks for going short. However, the pair had a strong pull back and in the 4H chart it is above the Ichimoku cloud and the MACD is in positive territory. The momentum for the short term has worsened because of this. The pair is still meeting all the conditions in the Daily chart but the PSAR got hit. A position has been placed around this area at 0.87437 and the stop loss for both positions is 1/4 Weekly ATR above this at 88200. There is a Fibo 38.2% Fibo level at 0.8770 measured from the recent top at 0.8911 and bottom at 0.8540 where the pair retreated last Friday.With the new recent low made in week 45 and the indicators in the Daily chart being bearish it seems as if the recent pull back will hold and the downtrend could resume any moment.
- In the daily chart the Ichimoku is meeting all the conditions. Price is however above both MA's.
- The MACD is in negative territory. It is consolidating and according to the Histogram it is weakening.
- The Parabolic SAR is long but it is showing the preferred pattern of lower stop loss on opening of new long and short positions.
Get The News You Want
Ranking and rating list Week 47
Rank: 27
Rating: =
Total outlook: Down
Possible positions for coming week EUR/NZD
This pair will be analyzed in more detail. The situation compared to the last weeks has improved and the pair is interesting for the Hybrid Grid strategy. At the moment the pair is in the middle of the Bollinger Band range in the Weekly(decision) chart after testing the Upper Band for several weeks. All other conditions in the Weekly(decision) chart are looking good for going short.
- As can be seen in the Currency Score chart in my previous article of this weekend Forex Weekly Currency Score Wk 47 , the NZD is having a score of 8 and the EUR a score of 3. With a Currency score difference of 5 it is an interesting pair for going short.
- The position in the Ranking and Rating list in the last weeks also shows that the pair is attractive for taking short positions. In the current list of this weekend Forex Ranking & Rating Wk 47 the pair has a rank of 4. This list is used as additional information besides the Currency score and the Technical analysis charts.
- Besides the general information mentioned the outlook in the TA charts also makes it an attractive opportunity.
Ranking and rating list Week 47
Rank: 4
Rating: - -
Weekly Currency score: Down
Based on the currency score the pair looked interesting in the last 3 months. The NZD is an average performing currency from a longer term view and currently having a score of 8. The EUR is a weaker currency from a longer term perspective and is still remaining at this area with a score of 3. The NZD is for now an average performing currency but if the scores remain at the higher levels in the coming weeks it will be a stronger currency. The EUR is no more as low as it was in the period of May to August but it is not recovering strong enough and it remains a weaker currency. Based solely on this information the pair looks interesting for going short.
Monthly chart: Down
- On the monthly(context) chart the indicators are looking reasonable for going short.
- The Ichimoku is meeting almost all the conditions.
- The MACD is in negative area but consolidating according to the histogram.
- The Parabolic SAR is short and showing the preferred pattern of lower stop loss on opening of new long and short positions.
- Since the monthly chart is used to get the context how that pair is developing for the long term the indicators are looking fine because they are showing reasonable strength in the current downtrend.
Weekly chart: Down
- On the weekly(decision) chart the indicators are looking reasonable for going short.
- The Ichimoku is meeting all the conditions.
- The MACD is in positive area but weakining.
- The Parabolic SAR is short and showing the preferred pattern of lower stop loss on opening of new long and short positions. There was a switch in the week of 5 Sept. This is considered a false signal.
Daily chart: Down
- On the daily(timing) chart the indicators are looking strong for going short.
- The Ichimoku is meeting almost all the conditions. By preference the MA's should cross below the cloud.
- The MACD is in negative area gaining strength.
- The Parabolic SAR is short and showing the preferred pattern of lower stop loss on opening of new long and short positions.
Total Outlook : Down
Although the explanation may seem simple and clear there is always risk involved. I added a FxTaTrader.com or the direct link to this article. Good luck in the coming week and don't forget to check my weekly Forex "Ranking and Rating list" and the "Currency Score".
Disclaimer: The article is my personal opinion, not recommendations, FX trading is risky and not suitable for everyone.The content is for educational purposes only and is aimed solely for the use by ‘experienced’ traders in the FOREX market as the contents are intended to be understood by professional users who are fully aware of the inherent risks in forex trading. The content is for 'Forex Trading Journal' purpose only. Nothing should be construed as recommendation to purchase any financial instruments. The choice and risk is always yours.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.