The NZD was the strongest currency while the JPY was the weakest. All the currencies are more or less at the same level as last week except for the CAD gaining 3 points.
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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. Because it is not ideal nor desired to change the range for a currency every single week, we perform several checks to avoid this.
- First of all the strength over a period of the last 13 weeks is considered. See each row for more information.
- Next the 13 weeks average is considered, see the last row called “Avg. 13 wks.”
- The number of weeks that a currency was stronger than another currency can also be considered.
- 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 4 December 2016 and is provided here for reference purposes:Â
Strong:Â USD, NZD. The preferred range is from 7 to 8.
Neutral: JPY, CHF, AUD. The preferred range is from 4 to 6.
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 closer to the Neutral currencies than the Strong currencies. For the last 4 weeks this currency was in the range of the weak currencies. For that reason the classification has changed from Strong to Neutral.
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The Neutral Currencies
The JPY is in a dip and having even a lower Score than the other Neutral currencies. Coming from a Strong currency a rebound is still expected but this may take a while and for now it is a Neutral currency. As can be seen in the chart the CHF and AUD are remaining well in the Neutral range for a long time. The AUD had a peak to 8 in October but went back to the Neutral range very fast.
Below you can see the Weekly Currency Score Chart with the 6 months data as a reference.
