Currency pair for beginners
A beginner who decides to trade Forex first faces the question of choosing a trading asset. Brokers typically
offer several dozen currency pairs, so which one should you choose for profitable trading?
It might seem like the most popular, but the answer isn't always so obvious, and many experts advise against taking a less formal approach.
Yes, EUR/USD offers the most favorable trading conditions, and there are a huge number of tools, such as expert advisors and indicators, written specifically for this currency pair. However, along with its advantages, it also has certain disadvantages.
First and foremost, euro news is released during Moscow business hours, which causes sharp fluctuations while you're trading Forex. Furthermore, the asset is influenced by a host of secondary factors, making it difficult to objectively assess price movement.
Simpler currency pairs for beginners might include:
USD/CHF - the stable or steadily rising Swiss franc significantly simplifies trading and makes it more effective. Especially if the US dollar is weakening, short trades can be extremely profitable.
AUD/USD - often referred to as a commodity pair, as the Australian dollar is closely linked to gold and agricultural prices.
USD/CAD - an interesting trading instrument, as both currencies are closely linked to oil prices, although the Canadian dollar is directly linked, while the US dollar is inversely linked. This means that a rise or fall in oil prices can lead to significant movement in USD/CAD.
AUD/NZD - is easily analyzed, and the spread is still not high; after a strong news story, the trend tends to remain in its direction for quite a long time.
EUR/USD – this currency pair can also be used for training with smaller amounts. Most authors use it to describe various strategies and tactics. Once you understand how these methods work, you can move on to other trading instruments.
Generally speaking, when choosing a currency pair for a beginner, it's best to look for an instrument with an extremely low or high price, that is, a pair where the price is at its minimum or maximum. This opens up limitless profit opportunities.
For example, GBP/USD is currently at a four-year low; positive news from the UK or negative news from the US can easily trigger a fairly strong uptrend .
