Forex Strength and Comparison for Week 2 / 2017

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


For analyzing the best pairs to trade looking from a longer term perspective the last 13 weeks Currency Classification can be used in support.
[I]This was updated on 8 January 2017 and is provided here for reference purposes: [/I]
[B][I]Strong: USD, NZD. The preferred range is from 7 to 8.[/I][/B]
[B][I]Neutral: CHF, AUD, CAD. The preferred range is from 4 to 6.[/I][/B]
[B][I]Weak: JPY, EUR, GBP. The preferred range is from 1 to 3.[/I][/B]
[I]When looking at the Average 13 wks. Score the [B]USD[/B] remains the strongest of all while the [B]EUR[/B] remains the weakest. The [B]JPY[/B] is now a Weak currency with a Average 13 wks. even below the [B]GBP[/B]. The [B]JPY[/B] had also 7 times a lower score compared to the [B]GBP[/B] in the last 13 Weeks.[/I]

[B]_____________________________________

The Weak Currencies[/B]

[I]The [/I][B][I]GBP[/I][/B][I] has a Score of 1 [/I][I]and the [B]EUR[/B] is now also going down again after a short revival in the previous weeks. The [B]JPY[/B] 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 where the [B]JPY[/B] 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. [/I]


[B]Putting the pieces together[/B]

Based on the last “13 Weeks currency classification” and the “Currency Comparison Table” the most interesting currencies for going long seem to be the[I]:
[B]CAD, USD and CHF[/B][/I].
These are [I]Strong or Neutral currencie[/I]s from a longer term perspective when looking at the last “13 Weeks currency classification”.

For going short the same analysis can be done and the following currencies seem to fit best:
[B][I]GBP, JPY and EUR[/I][/B].
These are [I]Weak or Neutral currencies[/I] from a longer term perspective.

Currencies with a high deviation seem less interesting to trade because they are less predictable. A good example at the moment is e.g. the:
[B][I]CAD and NZD[/I][/B][B][I].[/I][/B]

Some of the pairs in the “Currency Comparison Table” comply for a longer term trade based on the Technical Analysis (TA) of the Daily and Weekly chart. For the coming week these seem to be: [B][I]GBP/CAD, GBP/USD, CAD/JPY, EUR/CAD, USD/JPY, AUD/CAD, EUR/CHF and NZD/JPY.[/I][/B]

For more details read my full article “Forex Strength and Comparison for Week 2 / 2017” where the relevant Charts and Tables are provided.


Besides this article I also use the Forex “Ranking, Rating and Score” which is also available once a week on my blog. In the article “Ranking, Rating and Score” we look in more detail at the absolute position of the currencies and pairs.

It is recommended to read the page Currency score explained and Models in practice for a better understanding of the article. If you would like to use this article then mention the source by providing the direct link to this article. Good luck in the coming week.


[B]DISCLAIMER:[/B] The articles are my personal opinion, not recommendations, FX trading is risky and not suitable for everyone.The content is for educational purposes only and is aimed solely for the use by ‘experienced’ traders in the FOREX market as the contents are intended to be understood by professional users who are fully aware of the inherent risks in forex trading. The content is for ‘Forex Trading Journal’ purpose only. Nothing should be construed as recommendation to purchase any financial instruments. The choice and risk is always yours. Thank you.