Forex Technical Analyst Trader | Nov 10, 2014 12:43AM ET
In this article I will provide my view on the EUR/GBP, NZD/USD and the AUD/USD. These are the pairs that I am currently interested in or was interested in last week for trading with the Hybrid Grid strategy. I will pick one to analyse in more detail from the pairs that have not been discussed yet recently.
- All trades are based on specific rules according to the FxTaTrader Hybrid Grid strategy.
This articles will provide:
According to the TA Charts, the "Currency score" and the "Ranking & Rating list", the best pairs to trade are the USD/JPY, GBP/JPY, EUR/USD, AUD/USD, CAD/JPY, GBP/AUD, EUR/GBP and the EUR/CAD. 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 NZD/USD with profit 2x EUR/GBP and 2x NZD/USD.
Open/pending positions of last week
EUR/GBP
This pair will be analyzed briefly, for more information read the article Review FxTaTrader Strategy Wk 39/40. Profit was made last week on 2 positions.
The pair looked interesting in the last few weeks for going short. The situation is more or less similar to last week and the chances are high that the downtrend will resume shortly after the current consolidation period. The monthly and weekly chart are still showing strength for going short.
Ranking and rating list Week 46
Rank: 8
Rating: - -
Total outlook: Down
NZD/USD
This pair will also be analyzed briefly, for more information read the article Review FxTaTrader Strategy Wk 42&43. Profit was made last week on 2 positions.
The pair looks interesting in the last few weeks for going short. Price made a new temporary low last week but recovered fast making a Long-Legged Doji in the Weekly chart. Although it seems this pair can go lower it may not be in this coming week when also taking into account that the Currency score difference is now just 3 and the NZD itself is having a Currency score of 5 being in the middle of the Currency score range. See my previous article of this weekend Forex Weekly Currency Score Wk 46. The situation is more or less similar to last week and the chances are high that the downtrend will resume shortly after the current consolidation period. The monthly and weekly chart are still showing strength for going short.
Ranking and rating list Week 46
Rank: 11
Rating: -
Total outlook: Down
h3 Possible positions for coming week/h3AUD/USD
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 no more oversold in the Weekly chart. Price made also a new temporary low and it seems the downtrend can resume at any moment.
Ranking and rating list Week 46
Rank: 4
Rating: + +
Weekly Currency score: Down
Based on the currency score the pair looked interesting in the last 3 months. The USD did not show any dips in that period and did almost all the time have the highest score. The AUD changed from being one of the stronger currencies to an average performing currency. It seems it is starting to weaken even further and may become one of the weaker currencies for the coming period. After the recent pull back and topping at a score of 5 it found the way down again. Based solely on this information the pair looks interesting for going short.
Monthly chart: Down
Weekly chart: Down
Dayly chart: Down
Total outlook: Down
Although the explanation may seem simple and clear there is always risk involved. I added a disclaimer to my blog for this purpose.
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. Thank you
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