Forex Technical Analyst Trader | Jan 03, 2015 11:23PM ET
First of all a happy new year for everyone and a good trading year in 2015. In this article I will provide my view on the EUR/NZD. This is the pair that I am currently interested in for trading with the Hybrid Grid strategy and I will analyse in this article. I am also interested in the EUR/USD and this pair was analyzed in the article Forex Ranking and Rating Wk53.
- All trades are based on specific rules according to the FxTaTrader Hybrid Grid strategy..
This article will provide:
According to the TA Charts, the "currency score" and the "Ranking & Rating list", all the pairs in the Top 10 of the "Ranking & Rating list" are good to trade except for NZD/CAD. These are 2 average performing currencies with a currency score difference of only 3. See the currency score article of this weekend Forex Weekly Currency Score Week 1 for more information. 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 same direction in the pairs chosen for trading. It means that not all the possible positions of this coming week can be opened.
Possible positions for the coming week
EUR/NZD
This pair will be analyzed in detail. The situation compared to the last week's has improved and the pair is interesting for the Hybrid Grid strategy. The pair broke through the lows of the previous weeks and is clearly in a downtrend in the daily, weekly and monthly charts. It also has space to go down compared to the EUR/USD. There is a bottom on 10 July 2014 at 1,5409 where the price can go towards and which can clearly be seen in the TA weekly chart included in this article. There are more bottoms in the monthly chart around 1,500 where the price can go towards. The EUR/USD on the other hand just went through an important previous bottom but this happened briefly and on low liquidity so more confirmation is needed that price will continue to go down. The EUR/NZD is also showing a nice pull back at the moment and the first position can be placed around the previous bottom 1.5644 which has become a resistance level in the chart and the second and possibly third position can be placed between that level and more near the current price.
Ranking and rating list Week 1
Rank: 2
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 which currently has a currency score of 7. The EUR is a weaker currency from a longer term view which currently has a score of 1. Based solely on this information the pair does look interesting for going short in the coming week.
Monthly chart: Down
Weekly chart: Down
Daily chart: Down
Total outlook: Down
EUR/NZD
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