In the Currency Strength table the NZD was the strongest currency while the EUR was the weakest. The AUD gained 5 points last month and the NZD gained 3 points. All the other currencies remained around the level of the previous week with a maximum difference of just 2 points.

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12 Months Currency Score Strength

The 12 Months Currency Strength and the 12 Months Average are provided here below. This data and the "12 months Currency Classification" are considered for deciding on the preferred range. 

1. First of all the strength over a period of 12 months. See each row for more information.
2. Then the 12 months average, see the last row called "Avg. 12 M."
3. The number of months that a currency is stronger than another currency can also be evaluated.
4. The TA Charts for each Time Frame can also be consulted.

For analyzing the best pairs to trade looking from a longer term perspective the last 12 months Currency Classification can be used in support.

This was updated on 29 January 2017 and is provided here for reference purposes: 
Strong: USD, JPY, NZD. The preferred range is from 6 to 8.
Neutral: AUD, CAD, CHF. The preferred range is from 3 to 5.
Weak: EUR, GBP. The preferred range is from 1 to 2.

When looking at the Average 13 wks. Score the NZD remains the strongest of all while the GBP remains the weakest. The currencies are grouped together around a level which makes clear to what classification they fit best.

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The Weak Currencies + CAD

The CAD was a weak currency and has become this month a Neutral currency. As can be seen in the Chart below the CAD made a clear jump in the last months. The EUR and GBP remain weak losing 2 points each last month. Below is the Monthly Currency Score Chart with 24 months data as a reference.

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Currency Score Comparison

"Comparison table" and the "Ranking and Rating list"

The Forex Currency Comparison Table compares each currency with its counterpart based on the Currency Score. For more information about the currency Score of this month you can read the article "Forex Ranking, Rating and Score".
By using the comparison table directly below you can get a view without the volatility and statistics as opposed to the "Ranking and Rating list". 

"Comparison table" and the "Currency Score Chart"

The additional value of this table compared to the Currency Score table is that the Comparison Table compares the strength between the currencies of each pair. By subtracting the strength of the weaker currency from the stronger currency we have a way to compare each pair combination. 
The comparison table provides a way to compare currencies from a longer term perspective of 12 months and also simultaneously taking the current trend into account. By coloring the currencies in the X and Y axis according to their Classification we can show what the best combinations are. In doing this we apply 2 rules to make it clearer.

1. First of all only better classified currencies in combination with weaker classified currencies are "Approved" when there is a Currency Score difference of at least 1 in the current month.
2. The only exception is when 2 currencies are similarly classified but the Currency Score difference is equal to or more than 4.
3. It means that each currency should be as far apart from each other as possible in the range from 1 to 8. The classification of the currencies in question may change in the longer term. By using the difference of 4 which is exact the half of the range it seems a safe approach for trading 2 currencies which are similarly classified.
4. Even though currencies may be in the same classification a currency may be in a weaker/stronger period and may even change its classification in the future. See the current classification for the coming period at the beginning of this article.

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Putting the pieces together

Based on the last "12 Months currency classification" and the "Currency Comparison Table" the most interesting currencies for going long seem to be the:
NZD, USD and AUD. These are Strong or Neutral currencies from a longer term perspective when looking at the last "12 Months currency classification".

For going short the same analysis can be done and the following currencies seem to fit best:
EUR, GBP and JPY. These are Weak or Neutral currencies from a longer term perspective.

Currencies with a high deviation seem less interesting to trade because they are less predictable. A good example at the moment is e.g. the:
 JPY.  

Some of the pairs in the "Currency Comparison Table" comply for a longer term trade based on the Technical Analysis (TA) of the Daily and Monthly chart. For the coming month these seem to be: GBP/NZD, EUR/NZD, EUR/USD, GBP/AUD, GBP/CAD, GBP/JPY, USD/CHF, GBP/CHF and NZD/CAD.