The same process of measuring currency strength is used with other major currencies. Major currencies that are used in calculation of currency strength on the Forex market are: If the strength meter shows Euro is strong then that will be another confirmation to fundamental data the Euro will rise.Then you can decide to trade Euro by buying Euro as a base currency.Ĭurrency strength meter works by using one currency, like EURO, and then compare all possible combinations with major currencies to get the strength of Euro against all other currencies Do not make mistake using currency strength meter on its own.įor example if EUR will have an increase in interest rates which usually means the price of Euro will rise then you can check the currency strength meter. If you want to use a strength indicator in fundamental analysis you can do that by confirming the fundamental data of that currency. That means you make the analysis with RSI or MACD indicator and then verify with strength indicator if the currency is strong or weak to back up the RSI or MACD signal. Strength indicator can be used in technical analysis as a tool to verify if the currency is strong enough to back up the analysis done with other technical tools. Trading with a currency strength meter is really easy and all depends on your trading style and your trading analysis. How to Trade Forex Using the Currency Strength Meter
