The best time of day to day trade most popular international currency pairs, including the USDCAD, GBPUSD and NZDUSD. These pairs generally provide the highest return for your dollar, so it is easy to see why they are the most common forex trading pair. But there is a catch, you must be able to spot these opportunities before others do. Keep reading to discover some great tips on how to identify and trade these pairs to make money fast.
Like I said earlier, the two top currency pairs in AUDUSD and NZDUSD are widely considered to be among the strongest forex pairs in the world. If you think that being the strongest means that they trade very differently, think again. They are essentially very similar in a number of ways, particularly when it comes to their economic structures.
The major difference between these two currency pairs is that the EURUSD is far more leveraged than the NZDUSD. This is the equivalent to say, trading on the EURUSD with long positions will deliver higher returns than short positions. So, if you are a trader who prefers to hold onto his money for a longer period of time (and you should only do that when you have a high strike price), you will likely do better with the EURUSD. The eurusd, on the other hand, trades much more like the US dollars, but with less leverage.
The next currency pair that you should look out for when trading with AUDUSD is the CAN USD/CAD. This pair features commodities like oil and copper and a number of other common commodities in the Global Commodity Trading Initiative (GCIT). With the recent developments in the Middle East, Canada has also become a strong player in the oil market. In addition to this, the two have a trading relationship, which was previously stronger, although the relationship has dampened now that the Canadian dollar has strengthened against the US dollar.
When trading this pair, it is important that a trader has a good grasp on the economics of the commodities in the market. Like the gurus, the Canadian dollar has weakened versus the US dollar in recent months. This means that when trading the Canadian dollar, a trader needs to make a lot of money by buying low and selling high. However, since the Canadian dollar is stronger versus the US dollar at the moment, it would make more sense to buy high and sell high. A trader must be aware, however, that he may have to encounter some short squeezes along the way. There is nothing worse than the inability to take a profit after making a huge investment.
The gurus and AUDUSD are both considered to be “safe” for pairs. This means that despite recent volatility, the currency value is not likely to change dramatically. Traders need to be prepared for minor variations, as there will always be one side that will be stronger than the other. This stability is good news for new traders who do not want to take a huge risk. The stable nature of the currency pair means that investors can purchase a large amount of currency with little difficulty. Another aspect of the stability of the pair is that there is very little room for price movements, which can be a problem if you are new to trading these for pairs.
There is some volatility in the Canadian dollar/ euro pairs. This occurs most frequently when the US dollar weakens versus the euro. If this happens, the gbpusd will become more vulnerable to rapid price changes in the euro. Traders looking for a quick scalp should consider purchasing only the base currency pair on their charts. They will then only have to worry about small price changes in the base currency, which means that they can reduce their risk.
Canada has many beneficial characteristics for traders seeking to profit from the US market. One of the most important benefits of trading in this country is the fact that the Canadian dollar does not float. A trader will know exactly where the Canadian dollar will sit in relation to the US dollar and therefore can place trades accordingly. A major advantage of trading in Canada is the fact that it is widely recognized as a reliable source of quotes in comparison to the US dollar, and this allows traders to enjoy a large cost savings.