Speaking of the EUR/USD in FX trading, it is recommended for scalping, a trading method that settles in a few seconds, and is said to be suitable for repeated profits. It is famous as a currency pair that does not move much and does not experience large price fluctuations, making it very difficult to make a large price range. Perhaps because of this, the EUR/USD is also a currency pair that is very suitable for scalping. We will explain the characteristics of the EUR/USD.
Features of the Eurodollar
The characteristics of the Eurodollar can be summarized as follows. This is a currency pair that is often used as a swing trade method. The time zones where foreign exchange moves are the London market and the New York market. There is a possibility of large losses when using automatic trading, etc., so if you do not cut your losses technically, you will incur losses. Some people do things like contrarianism, but if the pattern goes far beyond the moving average line, it will not reverse and it will be difficult.
No. 1 trading volume in the world
EURUSD is the world’s most popular and traded currency pair along with GBPUSD and USDJPY. The euro is a currency used in about 19 countries, and the dollar is the world’s key currency, so it is characterized by a large number of users. As a currency pair that is driving the global economy, it has a large trading volume and is characterized by less price fluctuations. The Eurodollar is the most traded currency pair in the forex market, accounting for about a quarter of all forex trading worldwide.
don’t move much
As mentioned above, the euro dollar is a currency pair whose price movements are difficult to be unilateral. The monthly chart since 1970 is below, but it is a currency pair that only moves between 0.6 and 1.6. Therefore, the possibility of making a big profit is low, but it is a currency pair with a low risk of big loss, so it is recommended for beginners.
Source : Tradingview
Asian time doesn’t work
Eurodollar does not move on Asian time. Since it’s a EUR/USD pair, there’s no reason to move to Asian time. The main event runs from the London market to the New York market. Policy interest rates, unemployment, and even political events can cause cataclysms. Therefore, please note that the quality of price movements is completely different between Asian time and European time.
Is EURUSD good for scalping?
It is said that the EUR/USD is suitable for scalping. Here are the reasons why. To do it with a popular currency, use a good system and check the contents and specifications of each. Once you have one success, you will be able to win. As a rule, start with a small amount of assets and play at the optimal timing. In fact, even with the minimum amount of funds, you can make a lot of profit by accumulating in a short period of time. The basic principle is that when operating the screen, you need to play in a clearly advantageous situation. It is reassuring to know that it is the right timing.
less likely to trend
EURUSD is hard to trend. This is because, as explained above, the euro/dollar has a very large trading volume, so if it moves unilaterally, it will have a large repulsive effect and the supporting force will move easily. For that reason, you can expect stable price movements without trending, so it is a currency pair that is very suitable for scalping loads.
Inversely correlated with dollar-yen
The euro-dollar price movement has the characteristic that it tends to move in the opposite direction to the dollar-yen price, such as falling when the dollar-yen rises and rising when the dollar-yen falls. Just as the dollar yen is affected by the US dollar, the euro dollar is affected by the US dollar. Therefore, it is likely to be inversely correlated because it is linked to the movement of the US dollar. People who play EURUSD tend to watch USDJPY as well. By looking at it this way, you can also tell when to start scalping.
narrow spreads
The spreads for EUR/USD, USD/JPY, and GBP/USD are very narrow. In most cases, the difference between the buy and sell prices is within 1.0 pips, making them very suitable for scalping. Since scalping is often settled within a few seconds of entry, a narrow spread is the most important thing. Choose a narrow spread for risk management purposes. By quickly reducing one risk in advance, you can aim for profits even in a 1-minute market. It is recommended to choose a pair with low volatility.
scalping entry timing
The timing of entry for scalping can be fought safely if you keep the following points in mind, and your win rate will increase. The price is more stable than others, so it is easy to hold. As a result, many people win. Be sure to analyze and verify the resistance line carefully. Currently, you can use data such as indicators and EAs. There are indicators depending on the time of day after 9 p.m., so be sure to think carefully about large entry points and rates. Use technical analysis to make a good entry. It has high leverage in the industry, and by choosing a small amount, you can start with low trading costs. Exness also offers support, so check it out.
range market
Let’s look at the daily, 4-hour, and 8-hour charts. The key is whether the market is in a range. If the market is trending, it is better to stop scalping and follow the trend. When it comes to range markets, try to check it as much as possible with long-term charts. This is because short-term charts are more likely to be deceptive. Also, as explained above, Asian hours are more likely to be in a range, and European hours are more likely to be in a trend, so be careful about that as well. To do it on a recurring basis, you need the knowledge to recognize opportunities. Use the service to get the hang of making profits with USD/JPY and EUR/USD.
entry timing
The golden rule for entry timing is to sell at the highest price and buy at the lowest price. If this highest price and lowest price are broken, there is a high possibility that it will become a trend, so don’t hold on and cut your losses. This is because in many cases it means the end of a range market. If you make a profit of about 10 pips, it is a good idea to take profits. This is because there is a high probability that the EUR/USD will come back once it goes. In a day trading environment, avoid active times to make profits very efficiently. Aim for profits by repeating in a market that is moving slowly. It is important to aim and gain with small liquidity.
Source : Tradingview
Exness is for scalping
Exness is for scalping. This is because the spreads are extremely narrow. Therefore, if you like scalping, please register with Exness and try trading. Opening an account is free, so please refer to the article below to open an account. According to the information, the specs are high, and orders can be placed from the tool. It is important that you can make your own decisions and freely choose your style, and the fees are low. You can start in a short time by limiting losses with your funds. You can start by making the maximum number of purchases and selling, and aim for a contract.
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