Currency Strength Meter: 1st November

The currency strength meter this week highlights the stronger currencies were NZD and AUD. The JPY remains the weakest currency in the reversal zone, the Canadian Dollar was the weakest of last week which could follow into this weeks trading. 

Seasonally the New Zealand Dollar is the strongest currency and the Canadian Dollar is the weakest. The strength meter is suggesting we should follow this seasonal pattern. The JPY is also meant to be weak this time of year which looks set to continue against the stronger currencies. 

In news this week we have the Bank of England, Royal Bank of Australia and Federal Reserve announcements. This will add some volatility to the market this week especially the Federal Reserve announcement as the Fed have planned to announce tapering. If they do not announce the beginning of the tapering programme we will expect to see a reversal to the USD strength. 

Trending Pairs of the week:

NZDUSD, USDCAD, AUDUSD, USDJPY, NZDCAD, NZDJPY, AUDCAD, AUDJPY.

Chart To Watch: NZDJPY

The currency strength strength meter shows us that NZDJPY could continue to rally higher. Looking at the weekly time frame we can see that the price is in an impulsive phase heading towards a key resistance level at 83.50. If the price is trade to this point we should expect to see higher highs and higher lows on a lower time frame. 

Looking at the swing trading time frame we can see that the price has been consolidating. If the price breaks above this consolidation zone we could see a rally back up to the key resistance level.