Forex Technical Analyst Trader | Dec 14, 2014 03:18AM ET
In this article I will provide my view on the EUR/CAD, USD/CAD and GBP/AUD. These are the pairs that I am currently interested in or was interested in last week for trading with the click here .
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 EUR/AUD. These are 2 weaker currencies with a currency score difference of only 3.
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. For more information see Performance page on my blog for more details.
Open/pending positions of last week
EUR/CAD
This pair will be analyzed briefly, for more information read the article Review FxTaTrader Strategy Wk 47/48. Loss was made last week on 3 positions.
The pair looked interesting in the last few weeks for going short. The pull back in the last weeks offered a good opportunity. However, the pull back was stronger than expected and the stop loss on the open positions got hit. The EUR has gained strength this week and is having a Currency Score of 4 which is 1 point higher compared to last week. The CAD on the other hand got a lot weaker this week and has a Currency Score of only 2. Price got to the higher side of the range where a 50% (Fibo) level was present at 1.4310 measured from the high 1.4733 of Aug. 7 and the low 1.3882 of Nov. 23. The last short position was opened around this level. Based on the longer term view where the CAD is the better currency the probabilities were high to reach an end to the pull back and the downtrend resuming after consolidating around this 50% level. This took only 2 days and the pair broke through hitting the stop loss which was placed about 25 pips higher to avoid being hit because of only noise.
The pair looks still Bearish in the Weekly chart but in the Daily chart it looks Bullish. At this moment avoiding this pair seems the best.
Ranking and rating list Week 51
Rank: 9
Rating: +
Total outlook: Neutral
USD/CAD
This pair will be analyzed briefly, for more information read the article Review FxTaTrader Strategy Wk 48/49. Profit was made last week on 2 positions. The situation compared to the last weeks has improved and the pair looks interesting for the Hybrid Grid strategy. After the strong pull back in the weekly chart a few weeks ago the pair made a strong rebound in the last weeks. The indicators are looking fine for going long and the pair is in an uptrend.
Ranking and rating list Week 51
Rank: 5
Rating: + +
Total outlook: Up
GBP/AUD
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. The pair broke through the highs of last weeks and is clearly in an uptrend in the Daily, Weekly and Monthly charts. Profit was made last week on 1 position.
Ranking and rating list Week 51
Rank: 6
Rating: + +
Weekly Currency score: Up
Based on the currency score the pair looked interesting in the last 3 months, however not for the coming week. The NZD is an average performing currency from a longer term view and currently having a currency score of 4. The AUD is also an average performing currency from a longer term view and currently having a score of 2. Based solely on this information the pair does not look interesting for going short in the coming week.
Monthly chart: Up
Weekly chart: Up
Daily chart: Up
Total outlook: Up
GBP/AUD Weekly chart
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 articles are 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.
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.