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Dec 17 19:55 GMT

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Currency Heat Map Print E-mail

The objective of the Currency Heat Map is to provide a graphical presentation on the relative strengths of major currencies relative to others. For example, one could see EUR/USD rising and jumps into conclusion on the strength on Euro. But in fact, the strength in EUR/USD could merely be due to weakness in Dollar rather than strength in Euro. It could happen that Euro may instead fall against Sterling, Swiss Franc and Yen.

Analysis on Four time frames are provided:

For more details, please see the notes below.

4 Hours View

USD EUR JPY GBP CHF CAD AUD NZD
USD         
EUR         
JPY         
GBP         
CHF         
CAD         
AUD         
NZD         

Last Updated: Dec 17 19:45 GMT

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Daily View

USD EUR JPY GBP CHF CAD AUD NZD
USD         
EUR         
JPY         
GBP         
CHF         
CAD         
AUD         
NZD         

Last Updated: Dec 17 19:45 GMT

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Weekly View

USD EUR JPY GBP CHF CAD AUD NZD
USD         
EUR         
JPY         
GBP         
CHF         
CAD         
AUD         
NZD         

Last Updated: Dec 17 19:45 GMT

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Monthly View

USD EUR JPY GBP CHF CAD AUD NZD
USD         
EUR         
JPY         
GBP         
CHF         
CAD         
AUD         
NZD         

Last Updated: Dec 17 19:45 GMT

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Notes

The objective of the Currency Heat Map is to provide a graphical presentation on the relative strengths of major currencies relative to others. For example, one could see EUR/USD rising and jumps into conclusion on the strength on Euro. But in fact, the strength in EUR/USD could merely be due to weakness in Dollar rather than strength in Euro. It could happen that Euro may instead fall against Sterling, Swiss Franc and Yen. In such case, the EUR/USD may not a good choice to buy on Dollar weakness. Another point to note is that while a currency pair is rising or falling, it may just be part of a move inside a consolidation move. Hence, it's important to note wether the currency pair is trading inside or outside the prior bar's range to determine is it's really trending with respective to the concerned time frame.

Key:

The Currency Heat Map is presented to indicate the strength of the ROW/COLUMN pair.

  Dark Blue means the pair is above prior bar's high
  Blue means the pair is above prior bar's close but below the high
  Light Green means the pair is flat.
  Red means the pair is below prior bar's close but above the low
  Dark Red means the pair is below prior bar's low

In the example below:

  • According to the second cell in the first row, which is Dark Blue in color, USD/EUR is trading above prior bar's high. In other words, the familiar EUR/USD is below prior bar's low.
  • Also, according to first row, which has the second, fourth, sixth cell in Dark Blue, fifth and seventh cell in Blue. It means USD/EUR, USD/GBP, USD/CAD are trading above prior bar's high. USD/CHF and USD/AUD is trading above prior bar's close though limited below prior bar's high. Obviously, Dollar is having some strength except against the Japanese Yen.
  • In the second row, cell color is Dark red in the first, third and fifth cell and Red in the fourth cell. It means, EUR/USD, EUR/JPY and EUR/CHF are trading below prior bar's low. EUR/GBP is lower than prior bar's close even though it's above prior bar's low. Obviously, Euro is weak among the majors in the respective time frame.
  • Now, readers can see as shown in the third row that the Japanese Yen is having tremendous strengths, trading above prior bar's high against all currencies shown.

Example:

USD EUR JPY GBP CHF CAD AUD
USD
EUR
JPY
GBP

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