Forex Technical Analysis based on experience and research.

Sunday, January 3, 2016

Forex Currency Score Classification for Wk1

This article provides Currency Classification for the coming weeks. It is recommended to read the page Currency score explained and Models in practice for a better understanding of the article. This article will provide my analysis on the 8 major currencies based on the technical analysis charts using the MACD and Ichimoku indicator on 4 time frames: the monthly, weekly, daily and 4 hours. The result of the technical analysis is the 2 screenshots in this article showing the Currency Score and the Currency Score Difference.


 Last 3 months currency classification

The last 3 months currency classification from a longer term perspective are provided here with the new charts:
  • Strong: USD / NZD. The preferred range is from 7 to 8.
  • Average: JPY, GBP, AUD. The preferred range is from 4 to 6.
  • Weak: EUR, CHF, CAD. The preferred range is from 1 to 3.
The NZD has become a strong currency and switched places with the GBP which is now an average currency.
The CAD has become a weak currency and switched places with the AUD which is now an average currency.
For now the average and weak classification categories contain 3 currencies while the strong classification has only 2 currencies.


Here below are the charts providing the Currency classifications. There are three charts showing resp. the strong, average and weak currencies.


When trading according to the FxTaTrader Strategy some rules are in place. For more information see the page on my blog FxTaTrader Strategy. Depending on the opportunities that may come up the decision to trade a currency may become more obvious at that moment. If you would like to use this article then mention the source by providing the URL FxTaTrader.com or the direct link to this article. Good luck in the coming week.


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. The choice and risk is always yours. Thank you.