Asset Strength

It’s common to observe that when there’s a divergence in the strength of two assests, with one showing positive momentum and the other negative, it is typically expected that these assets will eventually converge as the current cycle concludes. Strategically pairing the strongest asset (by selling it) with the weakest one (by buying it) can be an effective approach to enter the market at the most opportune phase of the cycle.

How do I use this table?

This table is composed of four key columns: Currency, Term, Cycle, and Operation. Here’s a guide to understanding each:

Currency: This column indicates the specific currency that the data pertains to. It’s the first place to look when you’re considering swapping currencies you currently hold.

Term: This refers to the duration of the cycle. Long-term cycles unfold over an extended period, allowing more time to strategize your currency swaps. On the other hand, short-term cycles are rapid, mirroring immediate market trends. These shorter cycles offer opportunities for early swaps, potentially securing better exchange rates.

Cycle: This shows the current trend of the currency in comparison to others. A negative cycle signifies a loss in value over time, whereas a positive cycle indicates an increase in value.

Operation: This predicts the likely future trend of a currency’s value based on its current cycle and term. ‘Buy’ suggests an expected appreciation in value, ‘Sell’ indicates a likely depreciation, and ‘Wait’ implies that the current cycle is not yet complete, advising a hold on any actions.

Using the Table for Currency Swap Decisions

To utilize this table, first identify the currencies you possess. For example, if you have Euros (EUR) and plan a trip to the U.S. in three weeks, you should monitor the table for the point when EUR is indicated as ‘Sell’ and USD as ‘Buy’. Pairing currencies at these pivotal moments, when they are at the extremes of their cycles, allows for swaps at potentially the most advantageous times.


Supply and Demand

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