E Forex Strength And Comparison For December 2016

The USD was again the strongest currency while the EUR was the weakest. The AUD and NZD remain firm having for a long period a similar score. The NZD has now for 6 months a Score of 7 and the AUD 4 times a Score of 6 and 2 times near that Score.
Although the GBP gained a lot of strength in the last Weeks it only gained 1 point last month. The JPY lost strength for a second month but it is still the strongest currency when looking at the Avg. 12 months. 

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12 Months Currency Score Strength

The 12 Months Currency Strength and the 12 Months Average are provided below. 

1. First of all the strength over a period of 12 months. See each row for more information.
2. Then the 12 months average, see the last row called “Avg. 12 M.”
3. The number of months that a currency is stronger than another currency can also be evaluated.
4. The TA Charts for each Time Frame can also be consulted.

 

For analyzing the best pairs to trade looking from a longer term perspective the last 12 months Currency Classification can be used in support.

This was updated on 30 September 2016 and is provided here for reference purposes:
Strong: USD, JPY, NZD. The preferred range is from 6 to 8.
Neutral: AUD, CHF. The preferred range is from 4 to 5.
Weak: EUR, GBP, CAD. The preferred range is from 1 to 3.

All the currencies are within their classification when using the Avg. 12 M. Although the JPY is in a dip this month this does not have any effect on the Avg. 12 months Currency Score. The JPY remains the strongest currency.

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The Strong Currencies

In the last 2 Months the JPY is in a dip with a score of 3 being the weakest one of the strong currencies. However, it is clear to see that this currency was in the last period very strong, the strongest of all for almost the whole year. For that reason it does not seem that this currency will continue to weaken. There will be at least a period of consolidation before the currency will get close to a Neutral classification. It has at the moment the highest Avg. 12 M. Currency Score of all currencies! As can be seen here below the USD and NZD had similar dips and recovered. The NZD is very stable lately while the USD gained strength and is back to the area of the Strong currencies.
Here below you can see the Monthly Currency Score Chart with 24 months data as a reference.