Forex Strength and Comparison for Week 7 / 2017

[I]In the Currency Strength table the [/I][B][I]AUD[/I][/B][I] was again the strongest currency [/I][I]while the [/I][B][I]EUR[/I][/B][I] was the weakest. [/I][I]The [B]USD[/B] [/I][I]gained 2 points last week[/I][I][B][/B] and the [B]NZD[/B] lost 2. [/I][I][/I][I]All the other Currencies [B][/B]remained around the level of the previous week with a maximum difference of just 1 point.[/I]
For more details read my full article “Forex Strength and Comparison for Week 7 / 2017” where the relevant Charts and Tables are provided.
[I][/I]


[B]13 Weeks Currency Score Strength[/B]

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.

[ol]
[li]First of all the strength over a period of the last 13 weeks is considered. See each row for more information.[/li][li]Next the 13 weeks average is considered, see the last row called “Avg. 13 wks.”[/li][li]The number of weeks that a currency was stronger than another currency can also be considered.[/li][li]The Technical Analysis (TA) Charts for each Time Frame could also be consulted.[/li][/ol]

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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 12 Fegruary 2017 and is provided here for reference purposes: [/I]
[B][I]Strong: USD, NZD, CAD. The preferred range is from 6 to 8.[/I][/B]
[B][I]Neutral: CHF, AUD. The preferred range is from 4 to 5.[/I][/B]
[B][I]Weak: JPY, EUR, GBP. The preferred range is from 1 to 3.[/I][/B]
[B][I]
[/I][/B][I][/I][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 currencies are grouped together around a level which makes clear to what classification they fit best. The [B]CAD[/B] has become a Strong currency because of the good performance lately. In the last 13 weeks it had 7 times a higher Score compared to the USD which is also a strong currency.[/I]

[I][/I]
[B]_____________________________________

The Strong Currencies[/B]
[B][I][/I][/B]
[I]The [/I][B][I][/I][/B][I][/I][B][I]CAD [/I][/B][I][B][/B]is back at the high levels after having a dip in week 4 with a Score of 1. This currency is now classified as a strong currency. The other strong currencies are doing well also except for last week where the currencies are on the lower side of the range for Strong currencies.[/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]AUD, CAD and USD[/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]EUR, GBP and CHF[/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/are e.g. the:
[B][I]AUD[/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/AUD, EUR/AUD, GBP/CAD, EUR/CAD, AUD/CHF, AUD/JPY and CAD/CHF.[/I][/B][B][I][/I][/B]
[B][I][/I][/B]


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”, “Introduction to the FxTaTrader Forex Models” and “Statistics and Probabilities” for a better understanding of the article. If you would like to use this article then mention the source by providing the URL or 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.