Currency Strength Meter: 11th October
The currency strength meter this week highlights the stronger currencies were AUD and GBP. The weakest currencies are USD, JPY and EURO. This can offer us many trading opportunities this week if these markets begin to form trends.
The Australian Dollar is one to watch for us this week as the Commitment of Trader reports highlight a further increase in long contracts from the commercials and a decrease in short positions. This could flip the AUD strong which is now being highlighted by the strength meter as it is the highest on the chart above.
Trending Pairs of the week:
AUDUSD, AUDJPY, EURAUD, GBPUSD, GBPJPY, EURGBP.
Chart To Watch: AUDUSD
The currency strength meter is showing a potential opportunity to be long on AUDUSD going into this week. When the strength meter shows this we can look for opportunities in line with the trend in the market.
As we can see from this 4hr trend the price is making higher highs and higher lows, this is important as it shows the price agrees with the strength meter. If the price can break the current highs then retest and form bullish price action we can look to action a position in line with our swing strategy.
The targets for AUDUSD this week will be the major swing level at 0.7460.