5 Simple Forex Strategies for You Traders Who Often Pair Euros
Euro (EUR) becomes a currency with global liquidity after the US Dollar, then followed by Japanese Yen (JYP) and British Pound (GBP). Speculation of the strengths and weaknesses of the Euro circulating among forex traders lies in the currency pair that sets the comparative value in real-time. This causes traders to analyze and find out what Euro currency pairs are the most appropriate to choose from. Of the few Euro currency pairs available, the following 6 pairs are considered the most popular.
- EUR / USD – Euro / US Dollar
- EUR / CHF – Euro / Swiss Franc
- EUR / JPY – Euro / Japanese Yen
- EUR / GBP – Euro / British Pound
- EUR / AUD – Euro / Australian Dollar
- EUR / CAD – Euro / Canadian Dollar
Best Time for Euro Trading
It is common knowledge that the EUR / USD pair is one of the most sought after.This is because this currency pair always looks stable. But in fact when noted in depth, the pair is very sensitive to economic news, especially economic news coming from countries in Europe such as Germany, Greece, Italy and others. News from the country holding the USD must also have a large share in determining the stability of this pair.
EUR trading continues to increase usually on Sunday evenings to Friday afternoons in the United States with significant profit opportunities. This is coupled with volume and volatility that fluctuate greatly in each 24-hour cycle with the bid / ask spread in less popular pairs and widen during periods of calm and will narrow again during the active period. The ability to open and close positions at any time this will mark the main advantages of forex which most of its trading strategies will be revealed during the active period.
Many forex traders focus fully on the EUR / USD pair as the most popular currency market and have high world-scale liquidity. The pair maintains its liquidity throughout the 24-hour cycle. Shifts in the short and long term also have excellent classical ranges.
Previously it was said that EUR / USD was strongly influenced by news from both parties. This also helps formulate the best time in the Euro trade. This best time coincides with the release of economic data and opening hours in equities and futures exchanges. In the future it will be even better if the data release is followed by research from two directions because the Eurozone can move popular partners with the same intensity as the catalyst in each crossing place. This is also supported by US economic data which has a considerable impact on each currency. EUR crosses are also very vulnerable to macroeconomic and political events that will trigger price action that will strongly correlate in equity markets, bonds and currencies around the world. The real illustration is the Yuan devaluation in China in August 2015 until the tsunami disaster in Japan in 2011.
The best trading time with the next Euro is during economic release. The monthly economic data in the Euro zone will generally be released every 2 o’clock in the morning east time in the US with a time range of 30-60 minutes before release.One to three hours ahead will be a very popular time to exchange EUR pairs because the news will at least have the impact of at least 3 of the 5 most popular pairs. This will collide with the US trading day and generate EUR trading volume with a high chance for price movements of popular trend pairs. This makes the data released in Japan less desirable because it will only be released at 4.30pm and 10.00pm Eastern US time which coincides with the Euro zone which is in the sleep cycle.
Euro Trading Technique
The strategy in the Euro trading pair is one of the important points . This strategy varies. Besides choosing the right time in trading, you also need to pay attention to trading techniques . Here is one example of EUR / USD trading techniques that you might be able to make trading references.
- Open EUR / USD pair on TF H1 at 05.00 WIB
- Focus on the first 3 candles , if the body candle is at least 12 PIP then the OP may take the opposite and TP in the open market (If the price is down then Buy TP in the Open Market. If the price is up then take TP Sell in the Open Market).
- Open EUR / USD pair on TF H1 and H4 at 05.10 WIB.
- When the last candle on both time frames is red, do sell
- If the last candle on both time frames is green, do buy
- But if the last candle on both time frames is not the same color then do not open positions.
- Do it with TP 20 PIP first if you haven’t profit yet. Only after profit can you close with 10 PIP.
This technique is a ’72’ splash number ‘. The 72 splash number is the price that ends 72 like 1.4372. If the price touches the splash number above the open market price, then sell. But if the price touches the number splash below the open market price then buy it.