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2012-07-20
Forex


Strength versus Weakness

All the different currencies perform different every day because of fundamental data, overall economic performance or interest rates. We measure their strength and compare their overall performance to each other. The basic idea behind this comparison is to buy strong currency and sell weak currency. If currency pair AUD/USD is trending up, you are able to determine whether this happens due to AUD�s strength or USD�s weakness. In determining this we are able to choose the most valuable pair to trade. We look at the top 8 currencies: EUR, USD, GBP, CHF, JPY, AUD, CAD and NZD because they represent up to 90% of the whole forex market volume.


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