By using an effective currency strength meter, you will have another tool at your disposal that will empower you to become a profitable trader. This Forex indicator displays which currencies are strong and which are weak at any given moment, reflecting that movement in a matrix. Using the Forex Currency Strength Meter in conjunction with support and resistance indicators, for example, can potentially yield better results as a more complete trading strategy.
If it has gained strongly on the day, is it because the EUR is doing well, or is it because the USD is performing poorly? Consider the Euro/US Dollar currency pair ( EURUSD). However, It does make it complicated to judge the performance of a currency in isolation. This creates many interesting opportunities, including the ability to measure one currency's strength against another. When you take a Forex position, you gain exposure to two different currencies. One aspect of the Forex (FX) market that differentiates it from other financial markets is the concept of currency pairs.
