Important Things When Forex Analysis Pair EUR / USD
EUR / US Pair is a pretty favorite pair to be the object of trading by beginner forex traders or experienced traders. Analysis on forex pair EUR / USD also every day has always been provided by many parties. But there are some things that you really need to remember when doing forex pair analysis is for your trading can be successful and achieve profit as you wish.
EUR / USD will represent 2 currencies from the region that has the largest economic conditions in the world. Very many multinationals rely heavily on the two countries that own the currency. Liquidity rate of EUR / USD pair is considered quite high so it can provide very interesting opportunities for traders who want to get profit throughout the day. In addition, EUR / USD pair can also ditradingkan with various strategies both scalping, swing trading, day trading and others.
The US dollar is the most vital currency
In international trade or commonly known as reserve currency, or it can also be called foreign exchange currency used by a country to conduct transactions of goods, capital and services. The US dollar is the main reserve currency in the world, besides the price on commodities is also considered important, for example, gold and petroleum.
Euro, the currency of 19 countries
In general, the currencies in the world will be designed to be used by 1 country only, except for the Euro currency. Euro has been intending to unite countries in continental regions of Europe into a single monetary union.
The status of the political and monetary unity that has been targeted by European unity initiators has made the Euro very vulnerable to disintegration issues, not only for the Euro region but also for the EU and their respective countries.
For example, the British plan to get out of the European Union, the desire of some extreme parties right France, Italy, the Netherlands to get out of the Euro zone and others. So that every time the signal of political instability has been considered highly relevant and also significant by the market then the Euro will tend to weaken.
The economies of each country that use the Euro will have an effect
In EUR / USD pair is not just for general conditions such as economy in US and Euro zone that can influence, but also for each member countries like Australia, Cyprus, Estonia, Belgium Germany and others. Among the data, the largest and most observed countries are Germany, Spain, France and Italy.
So not infrequently if the EUR / USD pair experienced a state of turmoil alone because of the economic data from Germany. Especially if it turns out substantial changes that occur in the data associated with services and manufacturing. As Euro zone economic activity strengthens it will appreciate. While experiencing slowness, the Euro will be depressed.
Differences in direction of monetary policy
The most important issue that could affect the forex pair analysis of EUR / USD is the comparison of a relative economic condition between 2 regions. In normal conditions, the US economy that can go very quickly will greatly affect the value of the dollar.
As for the European economy is experiencing very strong growth will further encourage the Euro to rise. One indication of a relative strength between the two countries is the level of interest rates. When US interest rates are higher than European interest rates then the dollar will increase but when Euro zone interest rates are higher then the dollar will be weak.
This condition is not an absolute law and can change depending on the situation.But very clear, that the trader pair EUR / USD should pay attention to maneuvers in the US central bank or Euro zone.
Currently, the Euro’s movement is strengthening slightly on the US dollar, according to the results of the European Central Bank meeting. However, the Euro is also potentially to experience a weakening if political developments in the Euro zone are not yet fully stable.
The Most Efficient Time For Trading With Pair EUR / USD
Fundamental news that often appear for EUR that is at 16.00 and 18.00 WIB for medium and high impact. As for the USD at 19:30 to 22:00 pm.
- Movement on the EUR on a weekly basis, if the downtrend then the EUR will be very likely to be high weekly when Monday to Tuesday and very fast to terbentu high when in the European market open Tuesday. With an increase in conditions reaching 50 sapai 100 pont of open daily weekly. Downtrend will occur between Wednesday and Thursday and the fastest for the European open market is Wednesday. The weekly drop will range from 50 to 500 points.
- If EUR turns uptrend when the open market of USA to close the market of europe, then for the time of closing market europe same open market Sydney EUR will experience correction from 5 to 20 point. Likewise if the downtrend.
- Range of movement in open market sydne to open session london will tend to get 10 to 38 points from open daily.
- On Tuesday to Wednesday usually EUR will be back at open daily Tuesday.For example, Euro Tuesday to open daily price 1000 and also during the tumble down to 800, then on Wednesday will chase up to 1000, then you can open a buy position at low.
There are still many pairs of currency pairs that you need to learn. To be able to gain profit when trading learn the pair with the right will be highly recommended.