Understanding Currency Ranges and Trading Pair Characteristics

After grasping the individual characteristics of currencies, the next step in becoming a trader is understanding currency ranges and trading pair characteristics. This article will discuss some popular currency pairs and how trading sessions and fundamental news affect price movements.

Popular Currency Pairs

1. AUD/USD

• Suitable for casual trading due to its movement being half of EUR/USD or 3/4 of GBP/USD.
• Influenced by Australian and Chinese data.
  

2. NZD/USD

• Equally suitable for casual trading with minimal influence from New Zealand data.

3. GBP/USD

• Aggressive chart with fast price movement range.
• Fundamental news sessions at 06:00 WIB (medium impact) and 16:30 & 19:45 WIB for High Impact.
  

4. EUR/USD

• Considered easier to trade than GBP/USD by some observers.
• Fundamental news often appears at 16:00 & 18:00 WIB for Medium & High Impact.

5. USD/CHF

• Moves opposite to GBP/USD, EUR/USD, and AUD/USD.
• Useful for understanding overall USD movements.

6. USD/CAD

• Active in the American session, influenced by data from Canada and the US.

7. USD/JPY

• Often surprises, caution is needed when making Buy or Sell decisions.
• Fundamental news at 06:50 - 12:00 WIB for Japan and 19:30 - 22:00 WIB for USD.

8. EUR/GBP

• Often overlooked pair, but suitable for intraday experiments and scalping.
• Moves slowly, ideal for technical analysis with RSI (14) and Murrey Math lines.
  

Knowing the Daily Range

• Each currency pair has different fluctuations, some have large and small point ranges.
• The average range of currency pairs traded, according to FX360: EUR/GBP is around 100 pips, NZD/USD is around 100-150 pips.
• Daily ranges can be measured using indicators or through analysis of previous movements.
  

Understanding currency ranges and trading pair characteristics is a crucial step in managing risk and profits. Every trader should choose pairs that fit their trading style, risk tolerance, and available time. With a deep understanding, you can make smarter and more informed trading decisions. Happy trading!

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