Is the currency market difficult to forecast? Of course, we can say. Because of the higher volume and greater volatility in the forex market, changes are more difficult to predict. However, a list of some currency pairs with the highest degree of predictability is provided below. Using these currency pair tactics, anyone may learn to predict the forex market more easily.
Volatility, spread, trading approach, and the complexity involved in forecasting the foreign exchange market are the primary aspects to consider when deciding on the best currency to trade. The number of currency pairings that can be traded on the forex market is enormous.
This article will acknowledge you about the five best, most predictable currency pairs!
1. USD/ NZD
Even though this pair is well-liked for trading, it isn’t the simplest. Therefore some people can be surprised to experience it on this list. Remember that volatility is being predicted; this connection traditionally displays a volatile one!
Due to internal Bank of Japan changes, it may have exhibited some erratic behavior in Q1 2013, but this uncertainty is starting to fade now that the BOJ has chosen a new leader.
Although it showed some choppiness in the first quarter of 2013, this pair typically marks the range upon a breakthrough and remains inside it for a while. Additionally, you’ll see that it frequently struggles to adapt to the high levels. The New Zealand dollar continued to adhere to ranges quite well through Q2.
2. USD/ AUD
This pair is one of the most predictable because it respects both rising and falling channels. The combination does not encounter difficulties quickly, making it a secure pair to trade. The pair’s actions should continue throughout the four annual quarters.
Asian nations close by are important to the Australian economy. China’s Australian Balance of Payment share is 30% of the GDP. The imports boost the GDP and show that the Australian dollar is strengthening. Vist this global site to check latest forex reviews.
The strengthening of the Australian dollar indicates that it is making progress. All the lines function properly, although the resistance lines function more smoothly than the support lines. One of the best exotic currency pairs to trade is this particular currency pair.
3. GBP/ EUR
Compared to the GBP/volatile USD’s movements, the small trading range is smoothed out by the close economic linkages between Europe and the UK.
The cross displays a remarkable difference between trading in ranges and trading in a stable channel. This cross, which represents a safe return for currency values and tranquillity when conditions improve, may experience greater volatility due to the current Eurozone problems. Technical analysis shows that the EUR/GBP is predictable.
In the pair, the pip is worth more. When problems arise in the Eurozone, the EUR is impacted while the GBP naturally strengthens. The opposite is also true. With obvious barriers, the cross moves in rangers. It appears to revert to greater ranges despite having some tight ranges, which helps explain its constant trend.
4. CHF/ USD
Any changes in the EUR/USD immediately impact the USD/CHF since the Swiss National Bank maintains a floor of 1.20 for the EUR/CHF. You’d assume that given the recent volatility in the EUR/USD pair, the USD/CHF pair would also be difficult to trade. However, this is not the case. In contrast to most, this pair’s behavior is more predictable.
A new trading range is usually established and maintained when there is a breakout. With this pair, ranges are quite clearly specified, and its behavior appears to be set to stay the same as durable as the Eurozone concern stays the same as well.
Although it is a significant Forex pair, it can occasionally be brutally unpredictable, and Q1 2013 was no different. The pair has improved its respect for ranges due to its recent break below the weekly support lines. This pair’s recently better behavior is anticipated to last through the end of the quarter until that can be noted how Mark Carney performs as the next governor of the Bank of England.
Technical analysis is typically a way to reach as many plausible decisions as possible. Every element that can provide a competitive advantage in profit-making must be considered.
It also has an impact on the variety of currency pairs exchanged. Restrict the pairs on your watchlist that have great price activity. Additionally, they are easier to trade, have a bigger advantage over the markets, and are more predictable.