EURUSD
The most popular forex trading instrument is the EUR/USD, with trades between these
two currencies accounting for over 60% of all forex transactions.
This is not surprising, as the pair is formed by two of the most popular currencies—the US dollar and the euro. These currencies offer a wealth of useful information, from news to analysis and exchange rate forecasts.
The EUR/USD is a rather interesting instrument with its own trading characteristics, which we'll discuss below.
Structure and general points.
In EURUSD, the euro is the base currency and the dollar is the quote currency, so the price of the base currency rises as the euro rises and falls as the dollar declines. When the US dollar strengthens, the opposite occurs.
The pip size for a standard lot trade is $10, so calculating the commission is quite simple for any trade volume.
Trading.
Trading the EUR/USD pair isn't as simple as it might seem at first glance. While there are plenty of analytical forecasts available online, frequent news releases that change the exchange rate of the currency pair make these forecasts irrelevant.
The greatest activity is observed during the European and American trading sessions, with the surge occurring at the intersection of these two trading platforms.
Those who prefer a more relaxed trading style usually choose Asian trading session, thereby excluding the emergence of news about either the dollar or the euro.
The pair's price is most influenced by news from the US and the EU, but correlation with other trading instruments also plays a significant role. For example, when the price of gold rises, the EUR/USD pair also rises in most cases, with the correlation being particularly noticeable on short- and medium-term timeframes.
The advantages of trading EUR USD are obvious, in addition to a large amount of information, you also get a lot of technical analysis tools, such as advisors, indicators, scripts designed exclusively for working with the euro/dollar.
