EURUSD is one of the most traded foreign currency pairs in the forex market. It is a robust pair to add to your portfolio for a number of reasons. You earn $10 for every pip with 1 lot trading size, plus you have plenty of market opportunities to seize thanks to the cross-market nature of EURUSD. You get a lot of market movement during both the London and New York trading hours.
EURUSD is an interesting forex pair to trade. Its movement is affected by two major economic powers, which means there are plenty of announcements, market changes, and trends to follow. Before you begin exploring the fundamentals affecting EURUSD, however, you we are going to take a closer look at some of the things you need to know about trading this pair.
Continuous Trading
As mentioned before, EURUSD comes to life during the London and New York trading hours, but that doesn’t mean you cannot trade the pair at other times. EURUSD, like other foreign currency pairs in the forex market, is also available across all trading hours.
That said, you get the most market movements during the native markets of this pair. You also get more economic data releases and big announcements when the European and American markets are live.
Speaking of trading times, certain hours of the day are crucial to EURUSD traders. 10 am GMT is when most economic announcements related to Euro are released, so you can expect big movements at this time.
The London market also overlaps with New York, making the period between 12 pm GMT to 4 pm GMT – the opening of the New York market and the closing of the London market – your target trading time. Expect to see plenty of moneymaking opportunities during this period.
Know Your Fundamentals
As stated, EURUSD is affected by news and events happening in the US and European markets. Some of the more impactful announcements are GDP growth, unemployment rate, and non-farm payroll. Announcements from the Fed and the European Central Bank are worth following as well.
Fundamental analysis of the European and American market is also made easier with these announcements scheduled beforehand. There are regular updates and even a forex calendar to use. Make sure you pair fundamental analysis with the right strategy.
Technical Strategies
That brings us to our next point, which is adopting the right technical strategy for trading EURUSD. Some of the best trading systems – found on Wall St. Nation – are actually based on trading EURUSD in live markets. This means the strategies can be implemented with little to no adjustment.
As for technical indicators, the classic Moving Average Crossover – which combines three MAs – is still very effective when used with EURUSD short- to mid-term charts. Anticipate breakouts and make sure you look for double-tops (or double-bottoms) to update your support and resistance points.
With these tips and tricks in mind, trading the EURUSD will not be a challenge. You already have plenty of resources to use as you approach the market. Making correct trading decisions and adapting to market changes is easy with the resources you now have at your disposal.
