Currency strength and pair matrix

Methodology and approach

This report evaluates major currencies by constructing a relative strength index for each currency, ranking them systematically from Strongest (Rank 1) to Weakest (Rank 8) across Short-Term and Medium-Term horizons. By pairing stronger and weaker currencies, the model identifies the currency pairs with the largest relative-strength differentials and classifies each from Strongly Bullish to Strongly Bearish. The pair with the narrowest differential in each horizon is treated separately as the model's Range- Bound pair.

Short-term executive takeaway

AUD ranks as the strongest currency short-term, while CHF ranks as the weakest, placing AUD/CHF at the Strongly Bullish end of the Short-Term Pair Matrix.

Separately, EUR/GBP has the narrowest differential (Diff. Weight 2), marking it as Range-Bound.

Medium-term executive takeaway

USD ranks as the strongest currency medium-term, while CHF ranks as the weakest, placing USD/CHF at the Strongly Bullish end of the Medium-Term Pair Matrix.

Separately, EUR/AUD has the narrowest differential (Diff. Weight 2), marking it as Range-Bound.

Table 1: Currency Strength Index (Rank 1 to 8)

Table 2: Short-term pair matrix — Strongly bullish to strongly bearish

Table 3: Medium-term pair matrix — Strongly bullish to strongly bearish