In the Currency Strength table, the CHF was the strongest currency while the AUD was the weakest. There were no significant changes last week with the highest difference of just 2 points compared to last week. This was for the GBP gaining 2 points. The other currencies remained around the same level of last week with a maximum change in strength of just 1 point.
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.
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 28 May 2017 and is provided here for reference purposes:
Strong: USD, JPY, CHF. The preferred range is from 6 to 8.
Neutral: EUR, GBP, AUD. The preferred range is from 3 to 5.
Weak: NZD, CAD. The preferred range is from 1 to 2.
When looking at the Average 13 weeks Score we can see that the AUD is now very close to the other weak currencies. The currencies are grouped together around a level which makes clear to what classification they fit best. It is possible that the AUD will become a weak currency in the coming weeks.
Classification review
This week we take a look at the Weak currencies and the AUD. As can be seen, the NZD gained a lot of strength lately is clearly stronger than the other Weak currency, the GBP.
The AUD is classified as a Neutral currency but is very close to become a Weak currency and as can be seen in the chart it is fitting very well lately. It had 7 weeks of low scores with a small top at a Score of just 4. Below you can see the Weekly Currency Score Chart with the 6 months’ data as a reference.
