Forex Currency Strength Measurements

 

 

"Knowing the strength of individual currencies is just plain common sense. Trading currencies is matching a strong, trending currency with a weak one."

 

Stop relying one one pair to let you know what's happening.

The  mathematical weights of 8 individual currencies are measured according to their interaction in dozens of foreign exchange pairs.  The individual currency strength is the most essential data a foreign exchange trader can know.

When we see the EURUSD, we are looking at a chart showing the price difference between the Euro and the USA dollar.

That's only one view of real strength.

 Rather than judge strength of the USD from one pair, you must also look at any pair where the US dollar is being measured.

You end up seeing the true strength (or weakness) of an individual currency. 

 

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