Today, red news for CAD and USD. So it must be interesting to see how your indicator behave before the news and after the news.
This is what it looked like 
It’s pretty clear that USDCAD was set to go up even though on USDCAD itself was showing a ranging market the trend is a strong up trend.
As for the calculations, its nothing complicated. All I’m doing is trying to combine multiple pairs together. In the first case, combining the currencies that only has to do with USD and the other combining the ones that has to do with CAD.
USDCAD long means we are long on USD and short on CAD. That means to combine just the USD currencies together, I would say long on USDXXX currencies and short on YYYXXX currencies. This idea came to me from basket trading where we would trade a basket of currencies. But comibining currencies in this way, what I end up with is a similar synethetic currency that combined all of them BUT excluded USD or CAD. This way I can see how all the the other currencies are pulling or pushing USD or CAD in one direction or another. Think about this and see if you can create or come up with something that captures this idea.
Focus, Patience, Determination & Order in chaos
