Currency Strength Meter: 8th November

forex strength meter

The currency strength meter this week highlights the stronger currencies were CHF, USD and CAD. The JPY remains the weakest currency in the reversal zone but has started to show signs of a revival against the weaker currencies. The Australian Dollar is weakening from a reversal area too which could off reversal opportunities.

 

In news this week we don’t have much in the way of data releases but we have a few central bank speeches which could increase the volatility. We do have inflation data out of the US which could see inflation rise for the US to 5.8%. This could be a positive for the US markets this week and combined with seasonal longs we could see US stock market perform well.

 

Trending or Reversal Pairs of the week:

AUDUSD, AUDJPY, AUDCHF, AUDCAD.

Chart To Watch: AUDJPY

The currency strength strength meter shows us that AUD and JPY are converging towards each other. This could highlight a perfect reversal trade if we see the right conditions. the weekly timeframe shows the price in a strong uptrend making higher highs and higher lows however, the recent bearish weekly close could suggest the market is now entering a pullback phase.

If this is going to happen we would see a downtrend form on a lower timeframe for short opportunities.

audjpy 4hr chart

The 4hr timeframe does shows a new lower low formation which are the characteristics of a bearish trend forming. Using the volume profile tool we can see that in last weeks trading the market formed a high volume trading level around 84.75. If the price reaches this zone this week we could look for sellers to enter the market and wait for the swing trading strategy to set up for bearish opportunities.