The Forex market is regarded as one of the most active and liquid markets in the world. The market also offers enormous flexibility for traders looking to capitalize on opportunities created between some of the most commonly used currency pairs. The performance of these currency pairs over the course of the 2013 year allows a trader to accurately analyze and measure which currencies are performing better than others in relation to particular currencies. Also, currency pair performance will help traders discover which currency pairs are most profitable to trade with.

Performances of Different Currency Pairs in 2017

Before one can begin analyzing the performance of major currency pairs over the 2017 year, it is first important to understand how currency pair performance is calculated. The Forex Pair Performance Strength Score is a commonly used concept when determining the strength of one currency in relation to another. The technique involves the use of multiple statistical tools to calculate a strength score for each currency as they relate to a currency pair. Combining the different strength scores of a currency will also help a trader identify which currencies have proved to be strong regardless of the currency they are paired against.

A Forex pair consists of a base currency and a quote currency. The base currency is defined as the currency that the trader will look to buy or sell. The quote currency, on the hand, also known in some circles as the secondary currency is the currency in which the base currency will be quoted. For example if the base currency to be used is the Euro and the quote currency is the U.S dollar, their relationship will be described as the ratio between the base currency and the quoted currency.

Let us now take a look at how some of the most major currency pairs have performed back in 2013.

EURUSD

This pair has found to be consistently hovering around the 1.3600 mark. Over the course of November and December, the currency pair has displayed an upward trend. However, it must be identified that the currency pair has experienced some resistance to movement especially between the 1.3540 to 1.3520 zone. The currency also fell below the lower trend line indicating that a further drop below the 1.3480 to 1.3460 zone may be on the cards. The currency pair has also shown to close weekly at around 1.3500 mark suggesting that the pair may be prone to weakness in the coming year.

The 1.3630 to 1.3650 zone has shown to be one of extremely high resistance. It is suggested that if the currency pair was to overcome this zone, then an upward trend may emerge. The currency pair may climb upwards of 1.3700 in the coming year. The pair has also exhibited decisive strength when climbing over this bench mark, with analysis suggesting another zone of resistance developing in the 1.3810 to 1.3830 zone.

GBPUSD

This particular currency pair has displayed some resistance in moving anywhere above the 1.6500 threshold. In the event that the currency pair does not manage to effectively overcome this zone of resistance, indicated by a consistent weekly close above the 1.6500 resistance zone, there is a strong possibility that it will continue an upward trend rising to the 1.6680 to 1.6700 zone before experiencing any further resistance.

However, it must be said that the currency pair has also displayed resilience in consistently closing below the 1.6400 marker. However, if the pair continues to display a weekly close below the 1.6400 level, it is suggested that any position within the 1.6320 to 1.6340 zone is likely to be artificial and temporary.

AUDUSD

While there was some evidence suggesting that this currency pair would make a recovery, the pair resumed its downward trend exhibiting lows in the zone between 0.8840 and 0.8820. It is suggested that if the pair falls anywhere below its 2013 lows, that it will continue falling, approaching the 0.8770 (August 2010 low), and then further towards a support zone of 0.8670 to 0.8650.

However, the pair did exhibit some resistance when it rose to the 0.8950 area, indicating that if it does reach these highs again, they may be lasting. It is suggested that if the currency pair manages to overcome the 0.9000 mark, it may go on to rise to a resistance zone of 0.9240 to 0.9260.