Which forex pairs trend the most? The following information gives an up-to-date overview of the most popular currency pairings in 2022. It also includes a script for calculating trend information for any combination of trading instruments and periods.
It’s never easy to determine the trendiness of a currency pair (or any other trading instrument). It’s made worse by the fact that this trendiness shifts throughout time.
One year a currency pair may be heavily moving, and the following year it may be utterly trendless.
Still, comparing the trendiness of currency pairs based on a set of measures is feasible (and necessary if you trade the trend) to have a better knowledge of which currency pairings trend the most and how they trend.
The following article examines ten currency pairings using five measures. It discusses how these indicators function and why they may be used to estimate how trended a pair is.
Which Forex Pairs Trend the Most?
We picked 10 currency pairs for the investigation because they meet three criteria: they are extremely liquid (according to the 2019 Triennial Central Bank Survey), they have minimal spreads, and they are easily accessible via retail Forex brokers.
The USD/CNY currency pair, for example, is removed (despite being the world’s sixth most liquid).
Because it is only offered via a few brokers, has huge spreads, and is heavily regulated by the People’s Bank of China.
ReadRead more article: Foreign Exchange Market Today
What are exotic pairs?
Exotic currency pairings consist of a major currency coupled with the currency of a rising or powerful but smaller economy from a global viewpoint, such as Hong Kong or Singapore, as well as European nations outside of the Euro Zone.
Because these pairings are not traded as often as the majors or minors, the cost of trading them might be greater. This is due to the lack of liquidity in these markets. Below I have list of exotic pairs to show you:
EUR/TRY Euro/Turkish Lira
USD/SEK US Dollar/Swedish Krona
USD/NOK US Dollar/Norwegian Krone
USD/DKK US Dollar/Danish Krone
USD/ZAR US Dollar/South African Rand
USD/HKD US Dollar/Hong Kong Dollar
USD/SGD US Dollar/Singapore Dollar
Are exotic pairs worth trading?
Exotic forex pairings might help you diversify your trading by giving you more options. The volatility of exotic currencies is greater.
This raises the risk of trading them, but it also enhances the chances of discovering trading opportunities if the big FX pairings are unavailable.
Furthermore, developing market currencies have a higher interest rate, making them more appealing for carry trades.
An exotic currency pair, for example, is established when an exotic currency, such as the South African Rand (ZAR) or the Swedish Krona (SEK), is combined with a major currency.
The Euro (EUR) and the US Dollar (USD) are two examples (USD). The Turkish Lira (TRY) and the Singapore Dollar (SGD) are two examples of exotic currency pairings (SGD).
What are correlating pairs?
When two currencies move in lockstep, they are said to be linked. When the currencies in each pair are the same or involve the same economies, this might happen.
Get Key takeaway point
Instead, for this research, we’ll look at the following currency pairings (in alphabetical order):
To determine the trendiness of currency pairings, we employ the following methods: Changes in the mean and median rate of change. Volatility’s mean and median
Number of consecutive closes above/below a 50-period simple and exponential moving averages, on average and median.
The average number of Higher High + Higher Low or Lower Low + Lower High occurrences in a row.
The average number of successive bullish or bearish candles. To determine the percentage number, subtract the prior Close from the current Close and divide by the previous Close.
Obviously, this is a rudimentary form of investigation. However, it may provide us with some insight into the pairings that are often trending.
The volatility of a currency pair is computed by dividing the candle’s High minus Low by its Open. It’s also done in percentage points.
The math above is only a starting point. To find the finest trending currency pairings, we must properly determine the number of times a pair has been in a trend over a certain length of time.
In order to determine trend in three separate periods, we need a reliable indicator. For this, we utilize the moving average.
The mean and median number of consecutive closes above and below the moving average are calculated.
We may learn more about how trending the pairings are by rating the average of the number of closes above/below a moving average.
Beginners are often encouraged to use an exponential moving average rather than a simple moving average since the former lags less (i.e. it follows a trend more quickly).
By applying the equations to both basic and exponential 50-period moving averages, we can confirm this.
Which forex pair is always trending?
It’s never easy to determine the trendiness of a currency pair (or any other trading instrument). It’s made worse by the fact that this trendedness shifts throughout time.
One year a currency pair may be heavily moving, and the following year it may be utterly trendless. Nonetheless, it is feasible (and important if you trade the trend).
Which forex pairs move the most?
Many traders adapt their tactics to gain on the most volatile currency pairings since FX markets are sensitive to a variety of variables that impact their volatility.
Currency volatility, which is often calculated by measuring the standard deviation or variance of currency price movements, informs traders about how much a currency may change compared to its average over a certain time period.
Traders may also assess volatility by examining the average actual range of a currency pair or the range expressed as a percentage of spot.
The greater the degree of risk, the greater the amount of currency volatility, and vice versa. The phrases volatility and risk are sometimes used interchangeably. On average, various currency pairings have varied amounts of volatility.
Some traders prefer trading volatile currency pairings because of the larger potential gains. When trading extremely volatile currency pairings.
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What currency pairs are the most volatile?
The following are the most volatile major currency pairs:
- AUD/JPY (Australian Dollar/Japanese Yen) is a currency pair.
- New Zealand Dollar/Japanese Yen (NZD/JPY)
- AUD/USD (Australian Dollar/US Dollar) is a currency exchange rate between Australia and the United States.
- CAD/JPY (Canadian Dollar/Japanese Yen) is a currency exchange rate between Canada and Japan.
- AUD/GBP (Australian Dollar/Pound Sterling) is a currency pair.
As a consequence, other key currency pairings such as EUR/USD, USD/JPY, GBP/USD, and USD/CHF are more liquid and less volatile.
Emerging market currency pairings, such as the USD/ZAR, USD/TRY, and USD/MXN, have some of the greatest volatility levels.
Pairs of the most volatile currency
AUD/JPY, NZD/JPY, AUD/USD, CAD/JPY, GBP/AUD are the majors.
USD/ZAR, USD/TRY, USD/MXN – Emerging Markets
Apart from their limited liquidity, emerging market currencies are notoriously volatile, owing to the underlying risk that underpins their economies.
The chart below shows USD/ZAR (US Dollar/South African Rand) blowing over 25% higher in little over a month, demonstrating how volatile developing market currencies can be.
Throughout history, there have been numerous additional instances of developing market currency pairings swinging dramatically like this.
Which currency pair is most profitable in forex?
What are the world’s most popular FX pairs?
The following is a list of the world’s most trading currency pairs, and every trader should understand how to trade with each of them.
EUR/USD (euro to US dollar) is a currency pair.
USD/JPY (US dollar/Japanese yen) is a currency pair.
GBP/USD (British pound/US dollar) is a currency exchange rate between the United Kingdom and the United States.
AUD/USD (Australian dollar/US dollar) is a currency exchange rate between Australia and the United States.
USD/CAD (US dollar/Canadian dollar) is a currency pair.
USD/CNY (US dollar/Chinese renminbi) is a currency exchange rate between the US dollar and the Chinese renminbi.
USD/CHF (US dollar/Swiss franc) is a currency pair.
USD/HKD (US dollar/Hong Kong dollar) is a currency exchange rate between the United States and Hong Kong.
EUR/GBP (euro/British pound sterling) is a currency pair.
USD/KRW (USD/KRW) is a currency exchange rate between the United States dollar and the South Korean won.
Explanation of Forex Pairs
Because when you purchase or sell one currency, you instantly sell or buy another, currencies are always exchanged in pairs.
There is a base currency and a quote currency in every currency pair, with the base currency appearing first and the quotation currency appearing to the right.
The price shown for a currency pair is the amount of the quote currency required to buy one unit of the base currency.
The EUR/USD currency pair, for example, has EUR as the base currency and USD as the quote currency. If the quotation price is 1.2000, one euro is worth 1.20 dollars in US dollars.
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Which forex pairs pay the most?
There is no particular combination that will pay you more, according to my study. The profits on different pairings are entirely dependent on how effectively you performed the deal in the market.
To succeed in the market, traders must have a thorough understanding of the pairings.
EURUSD, AUDUSD, USDCAD, and AUDJPY are some of the most commonly traded currency pairs. These are the most liquid pairings at the same time, with tighter pips.
There isn’t a single pair of shoes that will pay you more than the others. Your abilities and expertise will pay you more. However, the pairings you choose to trade are equally important.
Trade with pairings that have high liquidity and low spreads to make money. EUR/USD, GBP/USD, USD/CAD, and USD/JPY are all viable options.
It all relies on the current market volatility and economic circumstances in the area. However, on most days, the GBP/EUR, AUD/USD, and CAD/EUR are the best performers.
Genuinely excellent brokers will make a lot of your job easy. ICmarket, for example, includes a forex and PNL calculator that can greatly assist you in forecasting potential gains with each deal.
Then there’s TD Ameritrade, which offers superior analytical tools to assist you in making effective trading selections.
Daily Average Range (12):105 EUR/USD
3 rows and columns
The proportion of maximal pip potential in this case is roughly 3/102, or 2.94 percent.
Average Range Daily (12):80
3 rows and columns
In this case, the proportion of maximum pip potential is roughly 3/7, or 3.90 percent.
As a result, these combinations are highly lucrative!
In addition, spreads play an important part in producing a profit in Forex trading. In this scenario, you may utilize Fxview, IG, or Hotforex to get cheap spreads.
You must keep in mind that certain pairings are more favorable to trade with than others, therefore you must have a thorough understanding of these pairs.
Second, retail spreads are far more difficult to overcome with IG and Hotforex than with Fxview and others, particularly when dealing with short-term trading. As a result, you must pick intelligently, putting your requirements first.
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Most volatile forex pairs
Currency pairings with high volatility might provide several profit chances. Learn about forex volatility, including the names of some of the most volatile currency pairings and how to profit from price fluctuations.
Because their price changes may be more extreme than less volatile currency pairings, the most volatile currency pairs provide intriguing profit opportunities.
While increasing volatility may provide more opportunities for profit, it may also raise a trader’s risk exposure.
Volatile pairings are mostly influenced by the same factors as their less volatile counterparts. Interest rate differentials, geopolitics.
The perceived economic strength of each currency’s issuing country, and the value of these countries’ imports and exports are all factors to consider.
However, there are a few considerations to make before entering a trade on a risky currency pair.
The most important thing to remember is that volatile currency pairings have lower liquidity than their less volatile equivalents since not every trader is willing to take a risk in a stormy market.
There is nothing to worry from volatile currency pairings if you have a well-thought-out trading plan and risk management approach in place.
It’s difficult to compile a comprehensive list of the most volatile currency pairings, owing to the fact that volatility may influence various currency pairs at different periods.
This is due to the aforementioned reasons, which may influence a currency pair’s price to increase or decrease. Some currency pairings, on the other hand, have a history of extreme volatility.
Forex pairings with high volatility are listed below.
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Forex pairs that respect structure
Let’s take a look at six currency pairings that follow market structure and price action. Trading with price action is, of course, quite rewarding.
Here are six of the most widely traded currency pairings in forex.
The EUR/USD currency pair has a negative connection with the USD/CHF currency pair and a positive correlation with the GBP/USD currency pair. This is owing to the euro’s, British pound’s, and Swiss franc’s positive connection.
2. Trading the “Gopher” in USD/JPY
The USD/JPY has generally been the second most commonly traded pair. Political tensions between the United States and the Far East have been a source of concern for this duo. Because the US dollar is the base currency in all three pairings, the pair tends to be favorably connected with USD/CHF and USD/CAD.
3. Trading the “Cable” in GBP/USD
The GBP/USD pair has a positive connection with the EUR/USD and a negative correlation with the USD/CHF. This is because the British pound, Swiss franc, and euro all have a positive connection.
4. Trading the “Aussie” (AUD/USD)
Because the US dollar is the quotation currency in these circumstances, the AUD/USD currency combination has a negative correlation with the USD/CAD, USD/CHF, and USD/JPY currency pairings. The USD/CAD connection is partly due to the fact that both the Canadian and Australian dollars have a positive correlation since they are commodities block currencies.
5. Trading the “Loonie” in USD/CAD
Because the US dollar is the quote currency in these other pairings, the USD/CAD currency pair has a negative correlation with the AUD/USD, GBP/USD, and EUR/USD currency pairs.
6. Trading the Yuan (USD/CNY)
The USD/CNY currency pair symbolizes the exchange rate between the US dollar and the Chinese renminbi, often known as the yuan. It has accounted for around 4% of daily currency deals in recent years. 1
In recent years, the US-China trade relationship has been tumultuous, offering USD/CNY traders with a plethora of speculative chances.
Best forex pairs to trade during each session
So you’ve got everything set, your terminal is up and running, and you’ve opened a few charts to check for chances. What are the most important questions that should come to mind at this point?
- Which pair should you trade and when should you exchange it?
- Is there a better time to search for particular pairings of people?
- What are the most important elements that influence currency pairs?
To answer all of these questions, we must first examine how currencies act and determine whether or not this behavior is consistent with your trading style. We’re trying to figure out when the optimal moment is to trade Forex pairs.
Is there a link between trading sessions and currency pairs?
The amount of forex currency trading is unmistakably linked to people’s day-to-day activities.
As the New York and London sessions draw to a close, the EUR/USD currency pair trading volume and main patterns emerge.
Take, for example, the most widely traded pair, the EUR/USD. As financial institutions and traders stop their trading sessions.
It is natural to witness lower activity during the night session in the EU/US. On the contrary, volatility rises as soon as they open in the morning.
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What are the best currency pairs to trade when?
Essentially, possibilities exist when there is a significant movement, breaking news, reports, or a strong trend that is gaining traction.
All of these factors manifest themselves throughout a certain country/daylight. Currencies
The New York session runs from 12:00 a.m. until 21:00 a.m. UTC. As a result, any currency combination with the USD is the ideal pair to trade during the New York session.
EUR, GBP, and CHF are all in the same boat. During the London session, these are the best currencies to trade.
If you’re a night owl or just can’t trade during the New York session, you may want to look for the best currency to trade at night.
Depending on where you reside on the planet, this might be the time for Sydney (AUD, NZD) and Tokyo (JPY) sessions.
So, if you want to profit from price movement, here is a table that shows the optimal times to trade particular pairs.
The table below contain the best forex pairs to trade during each session:
Time to Trade
Pairs that contains
Asian + Pacific
21:00 – 8:00 UTC
JPY, AUD, NZD
USDJPY, AUDJPY, NZDUSD, EURAUD…
7:00 – 16:00 UTC
GBP, EUR, CHF
GBPUSD, EURCHF, USDCHF, GBPJPY…
12:00 – 21:00 UTC
USD, CAD, XAU
EURUSD, USDCAD, XAUUSD, EURCAD…
Currency pairs that respect support and resistance
Five of the most predictable currency pairs that respect support and resistance, it is of course difficult to find out, but I have done the hard work for you, below I have handpicked the very five currency pair that respect support and resistance.
1. Australian Dollar to US Dollar (AUD/USD): With numerous years, the Australian dollar has ranked first in terms of predictability, and for good reason.
This currency pair tends to travel in well-defined uptrends and downtrends, and when it breaks out of them, it does so abruptly and clearly.
In addition, the Australian dollar is the best “risk currency,” with a significant link to stock markets.
It’s been less associated with Chinese statistics lately, which is good news since data from the world’s second-largest economy may be confusing.
The Reserve Bank of Australia avoids major shocks on a domestic level, enabling markets to respond to Australian data.
2. USD/JPY: This currency pair used to be plagued by frustrating and inconsistent range trading, but that is no longer the case.
It now pays more attention to support and resistance lines than in the past, and its recent higher trading ranges indicate that it is approaching its peak.
Fundamentally, the USD/JPY has a strong connection with US bond rates and is still the best currency pair to trade US data with.
3. USD/CAD: The loonie had previously been an afterthought for traders, but its recent appeal in response to Canadian statistics has propelled it to the top of the list.
When a top-tier figure is released, the C$ responds slowly, allowing retail traders to enter the transaction on a level playing field.
Even when oil prices surge out of range, the USD/CAD has a decent technical memory for prior support and resistance lines. Its regard for newer lines is a little shaky.
4. NZD/USD: Technically, the kiwi is a fantastic pair to trade since it produces huge breakouts and then rushes to the next support or resistance line to halt. It has, however, had its fair number of false starts.
Fundamentally, the NZD reacts to stock market movements similarly to the AUD, although the Reserve Bank of New Zealand enjoys surprises more than its Canberra counterparts. As a result, it has a lower rating.
5. EUR/USD: With so many moving variables, the world’s most popular currency pair is more difficult to trade and takes more skill.
Trading EUR/USD, on the other hand, gets simpler if a trader recognizes the pair’s proclivity for making an early false break.
Recent uncertainty has been unexpectedly beneficial to the pair, and this trend is likely to continue.
I have done the hard work for you, which currency pair trend the most! And I have provided all answers to your questions, the currency pair the trend the most are: EURUSD, GBPUSD, USDJPY, AUDUSD, USDCAD and USDCHF etc. Thank you, make sure you share with your friends.
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