Forex Strength And Comparison For Week 2 / 2017

In the Currency Strength table the CAD was the strongest currency while the GBP was the weakest for the second week. The GBP lost 2 points and the AUD gained 3 points last week. All the other Currencies remained around the level of the previous week with a maximum difference of just 1 point.

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13 Weeks Currency Score Strength

This data and the “13 weeks 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 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 8 January 2017 and is provided here for reference purposes: 
Strong: USD, NZD. The preferred range is from 7 to 8.
Neutral: CHF, AUD, CAD. The preferred range is from 4 to 6.
Weak: JPY, EUR, GBP. The preferred range is from 1 to 3.

When looking at the Average 13 wks. Score the USD remains the strongest of all while the EUR remains the weakest. The JPY is now a Weak currency with a Average 13 wks. even below the GBP. The JPY had also 7 times a lower score compared to the GBP in the last 13 Weeks.

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The Weak Currencies

The GBP has a Score of 1 and the EUR is now also going down again after a short revival in the previous weeks. The JPY is now also a Weak Currency and as can be seen it followed this path coming from a strong currency. Although the weakness in this currency may be of a temporary nature it is taking longer than expected. According to the calculations for the Weekly data in this article it is a Weak currency.  
This is however not the case in the Monthly article “Forex Strength And Comparison for January 2017” where the JPY remains the strongest currency according to the 12 Months Average Score. The currency may have enough time to recover looking from a longer term perspective and can even remain a Strong currency. Below you can see the Weekly Currency Score Chart with the 6 months data as a reference.