Forex Currency Score For Week 40

 | Sep 27, 2015 05:00AM ET

Last 3 months currency classification

The last 3 months currency classifications from a longer term perspective are provided for reference purposes. The necessary charts can be found in the previous article Weekly Currency Score Wk34. The currencies are classified for the coming weeks as follows:

  • Strong: GBP / USD / CHF. The preferred range is from 6 to 8.
  • Average: EUR / JPY. The preferred range is from 4 to 5.
  • Weak: NZD / AUD / CAD. The preferred range is from 1 to 3.

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Currency Score

For analyzing the best pairs to trade this classification is the first issue. When looking at the most recent score that is used for the coming period we can see in the screenshot below the following deviations:

  • The CHF has a score of 5. This is a strong currency and it should have by preference a score from 6 or 8. It has a score at the moment of an average currency.
  • The GBP has a score of 2. This is a strong currency and it should have by preference a score from 6 or 8. It has a score at the moment of a weak currency.
  • The JPY has a score of 7. This is an average currency and it should have by preference a score from 4 to 5. It has a score at the moment of a strong currency.
  • The EUR has a score of 6. This is an average currency and it should have by preference a score from 4 to 5. It has a score at the moment of a strong currency.


The conclusion is:

  • Half of the currencies are at the right level when looking at the last 3 months currency classification.
  • There is most probably a pullback for the GBP and the CHF when looking at the market as a whole. The uptrend has lost momentum.
  • There is an increase of momentum for the JPY and the EUR which are getting stronger.
  • The pairs that we may look at are all most probably trending except for the pairs with the JPY and the EUR which are most probably ranging. Some pairs may be in an uptrend and having momentum. These can be interesting, check the Ranking and Rating list published this weekend for more information.
  • The CHF and the GBP may offer a good opportunity to step in. However, it is important to determine if the specific pair is indeed having a pullback. For that reason it is good to see the momentum returning in that pair.