E Forex Strength And Comparison For July 2016

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 3 July 2016 and is provided here for reference purposes: 
Strong: USD / JPY. The preferred range is from 6 to 8.
Average: GBP, CHF, NZD. The preferred range is from 4 to 5.
Weak: EUR, AUD, CAD. The preferred range is from 1 to 3.

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12 Months Currency Score Strength

The 12 Months Currency Strength and the 12 Months Average are provided here below. This data and the “12 months currency classification” are considered for deciding on the preferred range. Because it is not ideal nor desired to change the range for a currency every single month, we perform several checks to avoid this.

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.
5. Besides these the “12 monhts Currency Classification” chart of each currency is also consulted and compared.

As can be seen in the “Currency Strength Table” here above the CHF has lost strength lately and is at the same 12 Months Average score as the NZD. For that reason the CHF changed classification from “Strong” to “Average”. The CHF was also only 5 months stronger in the last 12 Months comapred to the NZD. When looking at the 12 Months Average scores it is clear to see that the USD and the JPY, being strong currencies, are having a much higher score being above 6. Here below you can see the last 12 Months Currency Score Graph with the strong currencies, USD and the JPY, and the CHF which is now an average currency.

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