In the Currency Strength table, the USD was the strongest currency while the CAD was the weakest. There were some significant changes last month with the EUR gaining 3 points strength, while the USD and CHF gained 2 points. The AUD lost 5 points and the CAD 3 points. The other currencies remained around the same level of last week with a maximum change in strength of just 1 point

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.
 

  • First of all the strength over a period of 12 months. See each row for more information.
  • Then the 12 months average, see the last row called “Avg. 12 M.”
  • The number of months that a currency is stronger than another currency can also be evaluated.
  • 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 29 January 2017 and is provided here for reference purposes: 
    Strong: USD, JPY, NZD. The preferred range is from 6 to 8.
    Neutral: AUD, CAD, CHF. The preferred range is from 3 to 5.
    Weak: EUR, GBP. The preferred range is from 1 to 2.

    When looking at the Average 12 M. Score the USD is the strongest of all and the EUR the weakest. The currencies are grouped together around a level which makes clear to what classification they fit best. It is clear to see in the Avg. 12 M. values to what groups the currencies belong. 
    This is not the case for the CAD which is showing a lot of weakness, having the lowest score of all currencies in the last month. It has now an Average 12 M. Score between the Neutral and Weak currencies and is the weakest currency of the 3 neutral currencies.

    Classification review

    Print Friendly, PDF & Email

    Related Posts