Oil Crumbles, Cable Reverses and the Dollar Continues with Bullish Structure. GBP Reacts to CB Talk as the Queen Speaks. USD Waits for Fed Speakers; NZD Vulnerable to RBNZ.

Gold, USD Strong Inverse Correlation and in Confluence. FTSE Further Develops Range on Sharp Turn Lower. Dow Jones Industrial Average Struggles to Hold the Gap Higher.

When FX Traders first come to trading platforms, their interest is almost universally drawn to the same vehicle.

The reasons for this popularity make sense. Europe and The United States represent the two largest economies in the world. In the Traits of Successful Traders series, David Rodriguez looked at exactly this question while examining over 12 million live trades, placed by real retail.

EURUSD is represented by the blue line. Prepared by David Rodriguez for the Traits of Successful Traders series. As you can see, EURUSD is actually the least profitable pair at many times throughout the day, despite its raving popularity.

Notice that profitability seemed to be far lower on EURUSD during the very active market hours from 4AM EST to 2PM EST. This is an important point, as this is shortly after London, the largest FX market center in the world, opens for the day and brings a massive amount of volume into the market.

EUR USD - Trade EUR USD Like A Pro

When the US opens for business at 8 EST, more volume is introduced as The United States is the second largest FX market center. Notice that profitability for traders in EURUSD seems to bottom shortly after the US Open AM EST.

From the research, it appears as though as volume and market activity increase — trader profitability in EURUSD decreases, and decreases more-so than what was seen in the other most commonly traded currency pairs. Given the information we have on how traders have fared in the past, we can build an approach based on what has or has not worked for other traders in the past.

EUR USD Analysis | Euro Dollar Analysis | Euro Forex Forecast

As a matter of fact, after The United States closes for the day at 5: One of the primary reasons for this may be in the fact that the Asian session typically sees smaller price movements than what may happen during the very active times of the day. Support and Resistance, generally speaking, will see much more respect during the slower Asian trading session.

Prepared by David Rodriguez for the Traits of Succe ssful Traders S eries. Because of these slower price movements and the fact that support and resistance will have a greater tendency to be respected, traders may find range trading approaches on the Euro-Dollar to be most accommodating during the Asian Trading Session.

Once a trader knows they want to take a range-based approach on the pair, filling in the strategy can be simple. There are numerous materials available from DailyFX to assist traders with their range-trading approaches.

EUR/USD - Live Rate, Forecast, News and Analysis

In How to Analyze and Trade Ranges with Price Action , we looked at a mannerism of trading ranges using only price inflections and swings, no indicators necessary. By taking an approach such as this, you can locate the support or resistance in the market as the Asian session opens, and look to buy when price is at or near support; and look to sell when price is at or near resistance: In the JW Ranger S trategy , Jeremy Wagner brings price action together with the Commodity Channel Index, or CCI, to decide when exactly he might want to trigger into a position.

David suggests that, since markets generally exhibit more volatility during the active hours, and this is when traders have been the most prone to The Number One Mistake that Forex Traders M ake ; traders could use this volatility to their advantage by using aggressive risk-reward ratios with breakout strategies.

Trading the Cable - GBPUSD 15 of All About Currency Crosses. You can follow James on Twitter JStanleyFX.

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