Currency Strength Meter: 25th October
The currency strength meter this week highlights the stronger currencies were NZD and CAD. The JPY remains the weakest currency in the reversal zone we mentioned in last weeks strength and weakness analysis. The USD, CHF and EURO were the weakest currencies of last week with EURO and USD below the 0 line.
The NZDUSD and EURNZD could be ones to watch this week along with the JPY reversal in the market. NZD was one of the best performing currencies last week and if it continued we could see some trends develop against the weaker ones.
Trending Pairs of the week:
NZDUSD, USDCAD, NZDCHF, EURNZD, EURCAD, EURCHF
Chart To Watch: NZDUSD
The currency strength meter shows us that the NZDUSD is in an uptrend. Looking at the chart we can see that last week the price broke through the key 0.7200 level but couldn’t hold on to any higher prices. The current daily price action suggests the bulls are in control here as any selling in the market has been quickly bought back up. If the market forms a low ranging bullish candlestick on the daily chart we could see the market rally back to the swing highs of 0.7300.
The 4hr time frame shows the price struggling to break lower and if the price holds here after breaking the counter trend trendline we could look for our hourly swing trading set up for a long opportunity.