«EURUSD» is the most popular trading symbol at the Forex market. This currency pair has appeared on the foreign exchange market January 1, 2002.
Researches show that this trading instrument is the most commonly used trading symbol on the international Forex market. Statistics show that this currency pair occurs in one third of any trading operations. Currently EURUSD trading tool is the most commonly used trading symbol for today. Being wide spread, this currency pair has become very popular because. EUR/USD has attracted broad attention from both major investors and ordinary traders. EURUSD is one of the most active on the Forex market, because this currency pair has a high volatility. For this reason, it is suitable both for beginners and Forex market professionals.
The pair’s price fluctuations are fairly smooth; it can easily be seen on the price chart. You can see a higher activity of a price during the working day, as well as periods of small price movements on the chart. This is due to the geographical location of the largest trading centers, buying and selling of one currency for another. Major trading centers trading these currencies are located in Western Europe and the United States. The trading activity is the highest when the stock exchanges in Europe and North America are working simultaneously. When the working day in the U.S. and Western Europe is completed, the activity of changing these currencies is significantly reduced.
Due to high trading activity on this currency pair, it has attracted great attention of the traders who earn mainly on a daily trade on the Forex market. In order to carry out their trading activities successfully, traders need to be constantly informed of major economic events in the countries of Western Europe, as well as in the United States. The major events that occur in these regions are presented in the economic calendars of almost every brokerage organization that offers its customers the opportunity to trade on the foreign exchange market using the latest computer technologies.
Trading on the EUR/USD currency pair, the trader should focus on the trend movements. Thus, estimating the situation on the market, the trader must deal with the current price movement on a specific financial instrument, as well as to predict the future prices movements. A trader can use the graphical analysis, highlighting the trend support and resistance lines. Also he can identify important previous support and resistance levels that occurred earlier on the chart. Every trading symbol on the Forex market has a lot of its own distinctive features. For this reason, the trader must verify in practice the trading system using presented trading instrument.
The U.S. dollar is the world's main reserve currency, and the main competitor is the Euro. Taken together, these two currencies make up a large part of the world's monetary mass, used in the world at the moment.
Price change on the given currency pair changes the value of other currency pairs, having in their description the one of the above currencies. These currency pairs are USDCAD, USDJPY, USDCHF, and many others. Even if the U.S. dollar or euro do not appear in the description of a specific currency pair that does not mean they lack the influence of the two major world currencies. Influence occurs through cross training, and through many economic relations that exist between states - the owners of the considered currencies.
It is worth noting that the currency pair EUR-USD is a testing ground to test new trading strategies and ideas. Due to the high information content of candlestick chart, traders can clearly predict the future course of prices for a long period of time.