Forex Strength And Comparison: Week 25

For analyzing the best pairs to trade looking from a longer term perspective the last 3 months Currency Classification can be used in support.
This was updated on 19 June 2016 and is provided here for reference purposes:
Strong: JPY, CHF. The preferred range is from 7 to 8.
Average: USD, EUR, CAD, NZD. The preferred range is from 3 to 6.
Weak: AUD, GBP. The preferred range is from 1 to 2.
______________________________________

13 Weeks Currency Score Strength for Week 25 / 19 June 2016

The 13 Weeks Currency Strength and the 13 Weeks Average are provided here below. This data and the “3 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 week, we perform several checks to avoid this.

1. First of all the strength over a period of 13 weeks. See each row for more information.
2. Then the 13 weeks average, see the last row called “Avg. 13 wks.”
3. The number of weeks 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 “13 weeks Currency Classification” chart of each currency is also consulted and compared.

 

As can be see in the “Currency Strength Table” here above the CAD has lost strength lately. For that reason the currency has changed classification as from today and is now classified as an average currency. The Currency score is lower than the NZD which is also an average currency at the moment. 

Another thing that can be noted is the upcoming strength of the USD which is now an average currency. It has at the moment the same Currency Score as the CHF which is a strong currency. However the CHF is clearly stronger in the last weeks. If the USD remains strong next week then it will be classified as a strong currency. Here below is a chart with the Currency Scores of the USD and the CAD.