3 Currency Pairs to Watch as We Enter 2020

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Thread: What are the points to watch before entering a trade in a new untraded Currency pair?

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What are the points to watch before entering a trade in a new untraded Currency pair?

The biggest challenge nowadays is to trade with a new unknown currency pair and for that according to me some points should be noted and they are as follows :-

1. A good research or the back test is needed so that traders can notice the previous movements of the currency pair which can give them the real boost to trade with .

2. To trace out whether the trading currency pair is compatible with the proper trading strategy .

What about you people can you spot some more points associated with the aboves .

When we want to enter a trade in a new non-traded currency pair we should consider the following points :
1- We should look well for its previous and historical movements for knowing well the strongest resistance and support lines that we can open trade positions from when the price reaches to them and to know well the nature of pair movements whether it typically moves in up or down trends or in a side way .
2- We should open our trades only from the strong entry points in the market because the trading from bad entry points in these new pairs will not help us to gain profits because their movements are typically not be obvious.
3- We should know well the strategy that can be successful during the trading in this pair because our strategy may not be successful with this pair because the movements of these new pairs are very slowly and typically don’t follow signals of technical indicators .
4- We should trade in these pairs by very low risk until we understand their movements well then we can increase the level of risk to avoid losing any big portion from our trading balance if we surprised from any sudden movements from these new pairs .

Opening of trades in a new Currency pair which has not been traded before is just like doing so with any other Currency pairs which you have been trading with for a long time, the only difference is rhat there might be some irregularities or disparity between the way the prices of the new Currency pair to be traded fluctuates. Therefore it is very important to study the history of the of new Currency pair to know how it’s market movements happens, whether there are some irregularities in it’s movements which makes it different from the way other Currency pairs are been analysed and traded, therefore a different strategy or a slightly modified strategy may be applied.
When we finally wish to make tradings with these pairs, we should do so using a very low amount of risk at least for the first few trades so as to be certain of what to expect in the new Currency pair before finally making the trade with high amount of lot size and increasing other risks so as to make good profits.

The non-traded currencies can be very interesting and very profitable when traded with the right strategy, but it can also be very dangerous to trade and there unique reviews to consider first. The clue to adequately transacting the non traded currency pairs is to analyze the economy and government of the Home countries in order to have an extensive knowledge of how their economy is run and the underlying force of that type of pairs.

Before diving into the non-traded pairs, it is important to note two things; the currency pairs are often unpredictable and less liquid than other types of market pairs. During the course of market volatility, the price moves very frequently and very tense. Due to this, volatility gives a chance to make profits deluge to sudden change of price movements, nevertheless this can also lead to significant loss. It is important to study the history of that pairs in order to have an idea of possible movements of the market.

A new currency pair may appear strange and may be a great challenge trading it but one basic truth that is well established is the market has basic principles that it obeys and that is the essence of technical analysis,fundamental analysis and market psychology.
Definitely a good trader must have developed a personal strategy which must have stood the test of time and thus all he needs to do is to use the same strategy on this yet-to-be-trade pair and see how it works.There may be need for updating or upgrading the strategy in order to adapt it to the new pair but all I know is that with discipline and patience the new air will not be a problem in anyway

The biggest challenge nowadays is to trade with a new unknown currency pair and for that according to me some points should be noted and they are as follows :-

1. A good research or the back test is needed so that traders can notice the previous movements of the currency pair which can give them the real boost to trade with .

2. To trace out whether the trading currency pair is compatible with the proper trading strategy .

What about you people can you spot some more points associated with the aboves .

All those unknown pairs will be known soon after we choose them to practice and get familiar with. It’s a matter of time until we can get to understand them and able to find out about their characteristics, correlations, and volatility level after reacting to specific factors in the market that related to fundamental and technical analysis. I like how you describe the points above how we can get used to the unknown pairs, but I also have my preferences and experience of doing the same way with my trading. They are:

1. Practice with demo account and choose to trade with those unknown pairs,
2. Try monitoring the movement during specific trading sessions and pay attention to what’s happening to them whenever there’s a news with high impact is coming to release,
3. Use another reference from the contest’s participant who previously won the contest and see what are the pairs they were used to winning the contest. If there any of them who used unknown pairs we haven’t experience before, then we can evaluate their performance and learn the reasons why they took specific trade at a specific time in the market,
4. Before taking those unknown currency pairs, we better look at their spread first because if it’s too wide we better not choosing them as our main pairs. Major and minor pairs are still better to use.
5. Make some comparisons between currencies pairs to get the point which one that has excellent volatility and best reaction that suitable for our strategy.

One thing certain in the forex market when it comes to technical analysis is that any method that works successfully for a currency pair could also be applicable to others as long as they are traded in the market. Trading currency pairs remains one of the accredited way through which a trader is able to get success in the forex trading business. However, to make profit from trading this currency pairs, a trader does not just open his chart and jump on a trade hoping that it would make some success (the truth is that the trade can end up being in profit, but that was just based on mere coincidence as it counters the proper way through which trades are supposed to be placed). In other to make good trades, the ones called high probability trades, there is constant need of market analysis which serves as the only means of making good market predictions. After a trader might have considered his prediction based on the analysis made, the next thing is to crosscheck with his trading plan and see if his prediction agrees with what has been penned down, this way a person is assured of high probability trades with good returns.

When choosing a new currency pair to trade you must take several steps
At first you should look at sites and forums for someone who is good at analyzing this pair or following the movement of this pair and is known for the success of his deals in this pair
You can continue to analyze it for a while until you know the kind of analysis that this pair respects because in my experience in Forex some currency pairs have great respect for specific instruments of analysis
Also you must understand the news and economic and political events related to each currency in this pair in order to be familiar with the latest news because sometimes you are trading on a new currency pair and there is an economic or political event such as elections or any crisis you do not know about something and this leads to movements incomprehensible if You don’t know the reason
After that, you should see the daily movement of this pair to determine your goals and also capital management

Before we can trade any currency pair in the forex market, there is need for analysis because that is what makes it possible for you to earn money in the forex market, unfortunately someone who is trading regularly and not getting something from the live account will have challenges, there are losses that are especially needed in the forex market because that always it good you make money, analyze and understand the real movement in the charts so that you make decisions that would be reliable without getting something wrong, hence there is nobody that has made tremendous impact on the economy without learning about anything that can increase their trading performance apparently based on the indicator that they are using for the first time in the business.

In forex market we can trade easily here. but to make profit is so much difficult. If we can make good trade according to our own analysis then we can make very well trading in this market. when we trade on a new trading pair we have to trade here like others pair. We need to analysis the chart at first. We need to find out the best position for trading. if we get it then we need candle confirmation. This candle confirmation can give us success in forex business. I suggest all when u trade on a new pair u must have to understand the pair character and then we need to go ahead. Every trader want to secure his capital first and then they need to trade here.

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Many significant currency pairs hinged on GBP, EUR and the USD have been languishing as of late as investors are holding out until the central banks shift offset each other’s policies. However, while this does mean that the market appears to be in turmoil, the fact is that this is an excellent opportunity for swing traders to profit. Though there is an equal chance of winning on these trades as there are of losing.

One reason for these 50/50 odds is that the movement within these rand bound pairs is hard to predict. Then you never know when intraday reversals will kick in and upset everything. Though many savvy traders may trade these range bound pairs, but they also want to hedge their bets on a trending market which offer better prospects.

USD/INR Currency Pair

The US dollar has finally started to rise after having successfully broken out of consolidation. The move has in part been driven by the FOMC outlook which has called for further rate hikes in 2020 which tends to overshadow the robust forecast by the Bank of India.

As of right now, the currency pair is at a seven month high, and there is an indication of it moving higher. All indicators point to a bullish position and suggest a higher price once the 65.75 resistance threshold is broken. Most experts place the pair at 66.00 and around 66.50 within the next the next three months.

GBP/CHF Currency Pair

Currently, the GBP/CHF has seen a surge in its prices over the last 6 weeks and is near to forming a consolidation pattern. This uptrend is also driven by the expectation prices will be pushed further up by the Bank of England with inflation data being weak and sketchy from Geneva at best.

So, the combination of runaway inflation in the UK and a further risky attitude will perhaps drive the currency pair prices higher in the short term. Resistance is pegged at 1.3800, but this may not hold for long. Anything breaking above 1.3800 will put it in a bullish mode, and we could see it go as high as 1.422 within the next month or so.

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CAD/CHF Currency Pair

The Canadian dollar looks to have gained momentum against the Swiss Franc. The CAD/CHF has experienced a rise in the past month after confirmation of a reversal. Currently, it is trading below the 0.700 resistance, and we are confident that it will be broken. The indicators are clearly bullish and so higher prices seem inevitable, but overall momentum is fading. Though expect that the bullish outlook will lead to higher prices.

CAD/CHF Currency Pair

Once it breaks 0.7700, it would be bullish, and we are seeing experts placing a target of between 0.7800 and 0.7900 in the short term.

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Currencies wrap: the best, the worst, the most volatile

The week is over and now it is time to underline how successful it was. Below we gathered the best and the worst performers of the week and the most volatile pairs .

Best-performing currency pairs

Among the best performers, we can mention USD/MXN and USD/CNH. While the first pair has managed to gain around 2000 pips in a week recovering from the losses of September 2020, the USD/CNH showed a solid gain of more than 700 pips. Of course, the weakening of the Chinese yuan is strictly connected with the fears surrounding coronavirus in China.

Among major currency pairs, we can name USD/CAD as the strong performer during this week. The pair rose on the weaker oil prices above the 200-week SMA and tested the 100-week SMA at 1.3160. The pair has strengthened by more than 100 pips.

Worst-performing currency pairs

The worst performers, of course, were the pairs with the JPY as a quote currency. This is due the risk-off sentiment, which traders to invest in the safe-haven assets. Here we can mention USD/JPY. The pair went down from 110.07 to 109.27 after the previous two weeks of gains.

Also among the losers we can name AUD/USD and EUR/USD. Both pair have been having tough weeks.

The most volatile currency pairs

The award for the most volatile currency pair goes to USD/ZAR. On the daily chart, the pair could not stick above the 50-day SMA after the test of 200-day SMA at 14.5660 and fell towards the 14.3050 level. However, bulls did not give up their attempts to push the pair higher, as a result the pair has retested 14.47 on Friday.

GBP/USD also showed a mixed performance between the support at 1.3 and the resistance at 1.3175.

What changes will we see during the upcoming week? Let’s wait and see. All you need to do is follow our news and

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We could gain from buying emerging-market currencies such as South African rand, Mexican peso and Brazilian real.

UK Prime Minister was placed in the intensive care. As a result, the British pound plummeted dramatically today.

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We could gain from buying emerging-market currencies such as South African rand, Mexican peso and Brazilian real.

How to Read Currency Pairs: Forex Quotes Explained

This article covers the most important aspects of a forex quote that all traders must know – including top tips on how to read a currency pair:

  • Forex quote basics
  • Bid and ask price
  • The spread
  • Direct vs indirect quotes
  • Top tips to understand and interpret a forex quote

Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price (the quote), it is essential to develop a sound understanding of how to read currency pairs.

What are forex quotes?

A forex quote is the price of one currency in terms of another currency. These quotes always involve currency pairs because you are buying one currency by selling another. For example, the price of one Euro may cost $1.1404 when viewing the EUR/USD currency pair . Brokers will typically quote two prices for any currency pair and receive the difference ( spread ) between the two prices, under normal market conditions.

The following sections will expand on the different aspects of a forex quote. The same quote will be used throughout this piece to keep the numbers consistent. This example is presented below:

Example of EUR/USD forex quote

Understanding Forex Quote Basics

In order to read currency pairs correctly, traders should be aware of the following fundamentals of a forex quote:

ISO code: The International Organization for Standardization (ISO) develop and publish international standards and have applied this to global currencies. This means each country’s currency is abbreviated to three letters. For example, the Euro is shortened to EUR and the US dollar to USD.

Base currency and variable currency: Forex quotes show two currencies, the base currency, which appears first and the quote or variable currency, which appears last. The price of the first currency is always reflected in units of the second currency. Sticking with the earlier EUR/USD example, it is clear to see that one Euro will cost one dollar, 14 cents and 04 pips . This is unusual as you cannot physically hold fractions of one cent but this is a common feature of the foreign exchange market .

Bid and ask price

When trading forex, a currency pair will always quote two different prices as shown below:

The bid (SELL ) price is the price that traders can sell currency at, and the ask (BUY) price is the price that traders can buy currency at. This may seem confusing as it is only natural to think of “bid” in terms of buying so just remember the bid/ask terminology is from the broker’s perspective.

Traders will always be looking to buy forex when the price is low and sell when the price rises; or sell forex in anticipation that the currency will depreciate and buy it back at a lower price in the future.

Spreads

The price to buy a currency will typically be more than the price to sell the currency. This difference is called the spread and is where the broker earns money for executing the trade. Spreads tend to be tighter (less) for major currency pairs due to their high trading volume and liquidity. The EUR/USD is the most widely traded currency pair, so it is no surprise that the spread in this example is 0.6 pips.

Direct vs Indirect Quotes

Quotes are often displayed in accordance with the “home currency” in mind i.e. the country you reside in. A direct quote for traders in the US, looking to buy Euros, will read EUR/USD and will be relevant to US citizens as the quote is in USD. This direct quote will provide US citizens with the price of one Euro, in terms of their home currency which is 1.1404.

The indirect quote is essentially the inverse of the direct currency (1/direct quote = 0.8769). It shows the value of one unit of domestic currency in terms of foreign currency. Indirect quotes can be useful to convert foreign currency purchases abroad into domestic currency.

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