How do I choose a currency pair for Forex trading?

[talhayousuf]

Here are some steps that you can take to choose the best currency pairs to trade in forex:

1- Open charts of at least seven currency pairs

This could be your morning coffee time read. Before getting distracted by the news and the noise from the media, it is always best to take an unbiased look at the charts to see how the markets are doing. Which pairs are under pressure? Are any of them consolidating? Which pairs are moving up? Is there a specific currency that is behaving the same against most other currencies? This initial, unbiased interaction with the currency pairs on the forex dance floor is important because it will help you prepare for the next step of choosing the best currency pairs to trade in forex.

2- Skim through the latest market news:

Now that you have your heart set on a few currencies, you can quickly listen to the latest global news on your local news media, to see if there are any unusual market updates. This can include a Chinese stock market drop, a (lack of) interest rates hike, or a Swiss Franc jawboning). Reading the news will help you discover the latest market sentiment and the risk-off/ risk-on situation of the best currency pairs to trade in forex. We would typically want to avoid currency pairs that are facing huge volatility risk because even though one could argue you can find trading opportunities in volatile markets, I would argue chances are the market chaos and lack of a solid direction would kick you in the butt with unexpected surprises. Always better to be safe than sorry when it comes to investing your hard-earned cash!


3- Check out Invest Diva’s blog for the latest forex trading strategies

Now that you have the breaking news on hand, you can turn to our blog for the longer term, solid trading strategies on select currency pairs. If you find the currency pairs you had your eyes on, great! Read on and find out if these are the best currency pairs to trade in forex right now.

You should also determine if these pairs are suitable for your portfolio at this time. It is important to note that we don’t publish forex trading strategies for every currency pair, every day. The reasons include our goal to cut down on market noise, as well as avoiding to mislead forex traders to trade more than they should. We have noticed that traders with larger risk appetite tend to jump on any trading signal we publish, whether it is suitable for their portfolio or not. So, in order to promote responsible trading, we have limited our trading signals to only 3 per week. Anything more than that needs a thorough consultation with your truly, to analyze your current account, open positions, available margin, investment portfolio, and more.

 

[FXTrader2020]

find 1 currency pair watch how it moves and analyses is 1 at a time currency pairs

 

[kacraj]

Best pairs to trade is the majors, because it is volatile and easy to catch some pips in start of each session.

 

[asrol]

I check each pair, I check on the weekly chart, and daily. And I focus on candle that have reached the support or resistance

 

[Mark2]

if not too much risk, EurChf these thing move not too much and the cycle is short , but stay away when news come , major is always vaforable but boring

 

[mattnice]

Best pairs to trade is the majors, because it is volatile and easy to catch some pips in start of each session.

Main thing is to trade GBPUSD and nothign else. by far my favorite pair

 

[carritosss]

Here are some steps that you can take to choose the best currency pairs to trade in forex:

1- Open charts of at least seven currency pairs

This could be your morning coffee time read. Before getting distracted by the news and the noise from the media, it is always best to take an unbiased look at the charts to see how the markets are doing. Which pairs are under pressure? Are any of them consolidating? Which pairs are moving up? Is there a specific currency that is behaving the same against most other currencies? This initial, unbiased interaction with the currency pairs on the forex dance floor is important because it will help you prepare for the next step of choosing the best currency pairs to trade in forex.

2- Skim through the latest market news:

Now that you have your heart set on a few currencies, you can quickly listen to the latest global news on your local news media, to see if there are any unusual market updates. This can include a Chinese stock market drop, a (lack of) interest rates hike, or a Swiss Franc jawboning). Reading the news will help you discover the latest market sentiment and the risk-off/ risk-on situation of the best currency pairs to trade in forex. We would typically want to avoid currency pairs that are facing huge volatility risk because even though one could argue you can find trading opportunities in volatile markets, I would argue chances are the market chaos and lack of a solid direction would kick you in the butt with unexpected surprises. Always better to be safe than sorry when it comes to investing your hard-earned cash!

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3- Check out Invest Diva’s blog for the latest forex trading strategies

Now that you have the breaking news on hand, you can turn to our blog for the longer term, solid trading strategies on select currency pairs. If you find the currency pairs you had your eyes on, great! Read on and find out if these are the best currency pairs to trade in forex right now.

You should also determine if these pairs are suitable for your portfolio at this time. It is important to note that we don’t publish forex trading strategies for every currency pair, every day. The reasons include our goal to cut down on market noise, as well as avoiding to mislead forex traders to trade more than they should. We have noticed that traders with larger risk appetite tend to jump on any trading signal we publish, whether it is suitable for their portfolio or not. So, in order to promote responsible trading, we have limited our trading signals to only 3 per week. Anything more than that needs a thorough consultation with your truly, to analyze your current account, open positions, available margin, investment portfolio, and more.

Whats is the best pair I must get? tks

 

[bgm]

For the beginners - start with major USD pairs. Then you can start looking on minors and exotics according to the risk appetite.

 

[trizzle]

BTCUSD thats the best pair, you can even trade it on weekends for greedy people like me that wants to make money everyday. but beware it can also drain you account in a day. life is self its a 50/50 thing...

 

[Ashley Smith]

I think the best currency pair to trade is always the one that you understand more than others. You can start with studying major currency pairs.

 

[jasmin]

You could just use the option on mt4 or mt5 to change the pairs of your choice

 

[prepster6]

Any pair with CHF is usually easier to trade since CHF barely moves then you only have to keep track of the other currencies strength. Although, I recommend trading indices like S&P 500 or NASDAQ 100 over currency pairs; as they have intrinsic value; so fading back after a high or low is more likely than currencies that do not have an intrinsic value; currencies can continue in one direction for a very long time... Plus indices respect support and resistance more often due to this; as people sell or buy a stock depending on key levels more so than a bank that is manipulating currency prices.

 

[Hojat]

EUR/USD This can be considered the most popular Forex pair. Additionally, it has the lowest spread among modern world Forex brokers. It is associated with basic technical analysis. The best thing about EUR/USD is that it is not too volatile.

 

[arceliver]

I'm trading EURUSD and GBPUSD, nothing more, prefer to look to small pair quantities to not loose focus