Trading Forex in Baskets to diversify trading risk for both, speculative trading or hedging Forex risk by 
On the tabel below we are looking to the ranking of the Currency ETF’s (Exchange Traded Funds).
Each column is a week and 99 (green) means it’s the strongest in the selected basket while 10 (red) is the weakest in the basket of selected currency ETF’s.
So 99 means not a buy signal and 10 means not a sell signal but you see the ranking per week (column) and also all ETF’s are quoted in US Dollar while in Spot trading some currencies are quoted in their home currency.
In the next table we see the real strength/weaknest picture, with on top the Yen ETF with a closing price of $ 112.13 and a daily change of minus 17 cents while the weekly trend (green) was up for the last 18 trading days with a weekly trend change of 1.9% and a 3-month change of 9.1%.
On the weak side we see Pound Sterling with a last close of 138.07 which is -0.85 daily change and it’s weekly trend is down, but more important it’s long-term 3-month change is -14.6% !! (What a dive).
Checking out that weak Pound Sterling on a weekly chart below, another important indication is the weekly RSI which is below 50 since December 2007 and even more since August 2008 !
RSI below 50 means there is more dowward pressure then upward pressure on a weekly basis.
Long term investors like to see at least the weekly RSI above 50 before thinking about long positions.
