Which Forex Currency Pairs Are the Most Predictable?

Written by

I usually stick to trading  just one currency pair, the most popular one, the EUR/USD.  Occasionally, if I don’t see any high probability trades on the horizon with the EUR/USD, I will then trade the GBP/USD. But I am certainly  most comfortable with the good ‘ol EUR/USD, and the reason  is because I believe it is quite predictable – for me, that means that the currency pair usually “respects” it’s major support and resistance points and when it does break through a support or resistance point I can pretty much count on getting some pips in a low stress and high probability breakout trade. Also when the EUR/USD pair is overbought it will most of the time pull back and when it is oversold it also will likely retrace soon. Of course there is always a day of exception, but overall, I’ve found the EUR/USD to be a pair I can trust 80% of the time to behave how it is expected to behave.

Last week, though, I was wondering what other trader’s think about this question – so I went on an informal quest to ask traders I know, both online and off, as to what they thought was the most predictable currency pair. The answers actually surprised me. I thought nearly everyone’s top vote would also be the EUR/USD.  But not so….not at all.

Many of the traders who responded said that the AUD/USD was definitely the most predictable. Other favorites were the NZD/USD, the EUR/GBP, and the USD/CHF.  And yes, the EUR/USD was definitely in the top 3 for most.  Those 5 pairs had the most votes overall by the traders who responded, with the AUD/USD and the EUR/USD coming out as the top two most predictable currency pairs overall.



Source by Ann Pevey

Article Tags:
· · ·
Article Categories:
Forex

Leave a Reply

Your email address will not be published. Required fields are marked *

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.