Forex Strength And Comparison For Week 48 / 2016

The USD was again the strongest currency while the EUR was again the weakest. The AUD recovered from the strong pullback of the previous week and the GBP remains around the same level as in the previous 2 weeks. The CHF lost strength in the last 2 weeks and the JPY has difficulties with the continuing dip it has been in for the last 3 weeks. 

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13 Weeks Currency Score Strength

The 13 Weeks Currency Strength and the 13 Weeks Average are provided here below. This data and the “13 weeks Currency Classification” are considered for deciding on the preferred range. 

1. First of all the strength over a period of the last 13 weeks is considered. See each row for more information.
2. Next the 13 weeks average is considered, see the last row called “Avg. 13 wks.”
3. The number of weeks that a currency was stronger than another currency can also be considered.
4. The Technical Analysis (TA) Charts for each Time Frame could also be consulted.

 

For analyzing the best pairs to trade looking from a longer term perspective the last 13 weeks Currency Classification can be used in support.
This was updated on 25 September 2016 and is provided here for reference purposes:

Strong: USD, JPY, NZD. The preferred range is from 6 to 8.
Neutral: CHF, AUD. The preferred range is from 4 to 5.
Weak: EUR, GBP, CAD. The preferred range is from 1 to 3.

When looking at the Average 13 wks. Score the JPY (Strong) is now the weakest of the strong currencies and getting close to to the AUD (Neutral). The JPY had 7 times a higher Score in the last 13 weeks so for this week it remains a strong currency. If the JPY does not succeed to remain stronger than the AUD then it will become a Neutral currency. 
The situation for the GBP (Weak) is almost similar to the previous 2 weeks. The 13W. Average Score is still the lowest of all but now getting close to the CAD(Weak) while the GBP has been clearly a lot weaker compared to all the currencies in the last period except for the last 3 weeks. 

Until now the Classification made on 25 September 2016 is valid for 10 weeks. As it seems it can remain this way for the coming weeks except for the JPY. The distances between the 13W. Average Score of the currencies in the Weak Classification are too far from the Neutral Classification. The same can be said for the Strong Classification except for the JPY being just 0,0769 points separated from the AUD. The JPY (Strong) seems vulnerable.