Examples Of Our Currency Strength Meter
Let's look at a couple of examples. This is a snapshot of the meter levels right at this moment while I am writing this article. You will see the USD is very strong, GBP is reasonably strong, and Euro is weakest from the three. CHF, NZD and CAD are all very weak.
So let us check the current chart for the USD/CHF pair. You can see for the last 5 hours the strong upward trend of the USD (strong meter reading) against CHF (weak meter reading). Trading in favor of the USD would have been a good direction.
Let us now look at EUR/USD. Again we see a similar move down in the EUR (weak meter reading) versus the USD (strong meter reading). The move was not as strong, and EUR was not fully red with one bar, like the other example (CHF) above.
What about EUR/GBP? Well as you see below, the price was dropping for the 2nd half of the day against the weaker of the two pairs (EUR), but not in aggressive way. This is because the opposite pair (GBP) was not much stronger overall. The stronger moves come when two opposite ends of the scale are touched in strength.
Hopefully you find this tool useful and use it to your advantage.