Best currency pair for trading

Which is the best currency pair for trading and in how many pairs you trade generally?

The pair that matches the strongest currency with the weakest currency. Take the eight major currencies AUD, EUR, GBP, NZD, CAD, CHF, JPY, and USD. Match the strongest with the weakest. If, for example, the GBP is strong, and the NZD is weak, sell the GBPNzD. There is a maximum of 28 currency pair combinations between these majors, and now you know which are the best to trade at a given point in time. Currency strength-weakness analysis is the key.

It's not that simple. Strong currency has to be supported by longer term fundamentals. Most of the time when you see the strongest currency which is driven by sentiment it is already too late to buy it. In that case you should look for s/r levels to fade it instead. There was broker survey carried out with a question; What is the most common trait of the traders? Most of the brokers responded - overreaction. This is a result of fear and greed. Therefore fading the spikes is the most popular short term strategy by the hedge funds.

argreen posted:
It's not that simple. Strong currency has to be supported by longer term fundamentals. Most of the time when you see the strongest currency which is driven by sentiment it is already too late to buy it. In that case you should look for s/r levels to fade it instead. There was broker survey carried out with a question; What is the most common trait of the traders? Most of the brokers responded - overreaction. This is a result of fear and greed. Therefore fading the spikes is the most popular short term strategy by the hedge funds.

Yes...it really is that simple. Strong currencies are, by their very nature, supported by the fundamentals. That's why they are strong!

SwapTrader posted:
The pair that matches the strongest currency with the weakest currency. Take the eight major currencies AUD, EUR, GBP, NZD, CAD, CHF, JPY, and USD. Match the strongest with the weakest. If, for example, the GBP is strong, and the NZD is weak, sell the GBPNzD. There is a maximum of 28 currency pair combinations between these majors, and now you know which are the best to trade at a given point in time. Currency strength-weakness analysis is the key.

Thanks for your valuable suggestion. Which and how many pairs do you use for trading generally?

maria_taylor posted:

SwapTrader posted:
The pair that matches the strongest currency with the weakest currency. Take the eight major currencies AUD, EUR, GBP, NZD, CAD, CHF, JPY, and USD. Match the strongest with the weakest. If, for example, the GBP is strong, and the NZD is weak, sell the GBPNzD. There is a maximum of 28 currency pair combinations between these majors, and now you know which are the best to trade at a given point in time. Currency strength-weakness analysis is the key.

Thanks for your valuable suggestion. Which and how many pairs do you use for trading generally?

If AUD is strong, and USD is weak, I buy the AUDUSD. If JPY is strong, and GBP is weak, I sell the GBPJPY. If CAD is strong, and EUR is weak, I buy the EURCAD. Currency strength-weakness determine the pair I will trade at a given point in time. Using the eight major currencies, and matching them on this basis, there are 28 currency pair combinations. My favourite currency pair is the one that currently represents the greatest divergence between strength on one side and weakness on the other. Let this be your guide to pair selection.

maria_taylor posted:

SwapTrader posted:
The pair that matches the strongest currency with the weakest currency. Take the eight major currencies AUD, EUR, GBP, NZD, CAD, CHF, JPY, and USD. Match the strongest with the weakest. If, for example, the GBP is strong, and the NZD is weak, sell the GBPNzD. There is a maximum of 28 currency pair combinations between these majors, and now you know which are the best to trade at a given point in time. Currency strength-weakness analysis is the key.

Thanks for your valuable suggestion. Which and how many pairs do you use for trading generally?

That’s a nice way to choose currency pairs for trading. I also prefer major pairs to trade with, especially EUR/USD, GBP/USD, and USD/CAD. As these pairs are highly liquid and have low spreads also. Now I am planning to trade with EURO/GBP and AUD/CAD also.

I am most of the time also on EUR/USD , as maria-taylor says, that's the most tradable and liquid pair with low spreads... and I think as well traders with rather low experience tend to be on this pair...

depends... mostly on trade news, foreign relationships (geopolitics?), BIG banks... but, the price is always right! :)

Trading on on majors is always good because there is almost always around 100 pipes up and down.

I love EURJPY 😁
When the pair trending, most martingale system sure will be wiped out 😂

of d big 8, eurjpy has 3% of d forex pie, same w/ eurgbp...

TiffanyK posted:
I am most of the time also on EUR/USD , as maria-taylor says, that's the most tradable and liquid pair with low spreads... and I think as well traders with rather low experience tend to be on this pair...

. I’d also say EUR/USD, it has very good liquidity, tight spreads, high trading volumes, especially for novices.

sarahlawrence posted:

TiffanyK posted:
I am most of the time also on EUR/USD , as maria-taylor says, that's the most tradable and liquid pair with low spreads... and I think as well traders with rather low experience tend to be on this pair...

. I’d also say EUR/USD, it has very good liquidity, tight spreads, high trading volumes, especially for novices.

But EUR/USD also tend to make violent moves that can scare off newer traders or traders who are less calm. Just my thoughts. I am sure traders who track EUR/USD or trade it often enough have seen/experienced it move big both ways within the day.

I've never found a good pair, but instead a good correlation 'set'.

What do you mean by a correlation set and how do you trade with it? I have not heard of that way of trading before

maria_taylor posted:
Which is the best currency pair for trading and in how many pairs you trade generally?

I have good experience in trading and I think, EUR/USD is the best currency pair for trading

EURUSD is by far the best. Others can be erratic and unpredictable but old faithful EURUSD just plods along nicely

EURUSD is a fairly solid pair. The moves aren't that big recently. I have moved more of my trading to EURJPY, it trades in a similar way to EURUSD but ATR is over 100 pips now