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Predictable Trading Pairs of Forex
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5 Most Predictable Trading Pairs of Forex

Wed Jan 19 2022 18:25
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A guide to identifying the most predictable trading pairs of Forex.

The most predictable currency pairs rely on the economies and how the dollars perform relative to various factors. The article guides readers on the best forex pairs to trade for beginners by indicating the five most predictable trading pairs. 

Also, the predictions will help readers consider the best forex pairs to scalp and the best currency pairs to trade right now. Predictable currency pairs are the best forex pairs to scalp since the currencies have high trade volumes and tight spreads to minimize losses. 

Notably, the USD is the world’s most traded currency. To identify the best exotic forex pairs to trade, one can identify them against the USD. However, exotics are less traded hence have low liquidity. 

They are barely considered as predictable currency trading pairs due to their volatility. The article identifies which currency pair is most profitable in forex and investigates the best currency pairs to trade for beginners.

Forex trading pairs are not completely predictable but can be categorized into most and least predictable pairs. The main factors under consideration when selecting the best currency pairs to trade include:-
  • Spread
  • Volatility
  • Trading strategy
  • Challenge in predicting the forex market
The best currency pairs to trade for beginners are those that have high liquidity and low volatility as well as low spread and risks. The following are the topmost predictable trading pairs of Forex

The top 5 most predictable trading pairs of Forex

1. EUR/GBP

The close economic ties of Europe with the UK provide a smooth ride within the limited trading range as compared to unpredictable moves in the GBP/USD

The cross expresses impressive separation between ranges and consistent channel trading. The ongoing Eurozone troubles can cause further volatility for this cross – reflecting safe return for the currency values and calmness when things improve. EUR/GBP is predictable using technical analysis. 

The pip worth is more in the pair. When the Eurozone faces complications, the EUR gets affected and the GBP gets strong automatically. 

The same goes for the inverse. The cross moves in rangers with clear barriers. Despite having some narrow ranges, it seems to return to wider ranges hence understanding its consistent pattern.

2. AUD/USD

One of the most predictable pairs is this one as it respects both falling and rising channels. The pair do not easily experience challenges, making it a safe pair to trade. The behaviour of the pair is expected to repeat itself throughout the annual quarters.

The Australian Economy relies on nearby Asian countries. Australian Balance of Payment to China contributes 30% of GDP. The imports contribute to the GDP and reflect a rise in the Australian dollar. 

The strength of the dollar is tied to Asia’s exposure and the commodity cycle making the major currency pair workable. The commodity currency pair has its price closely tied with gold and oil prices and is highly dependent on them. 

The improvement of the Australian dollar shows that it moves to show gains. The resistance lines work smoother than support lines, but all the lines work well. The currency pair is one of the best exotic currency pairs to trade. 

This is due to involving the currency of a developing country.

3. USD/CHF

The Swiss National Bank maintains a floor of 1.20 under the EUR/CHF, therefore moves in EUR/USD have direct consequences for the USD/CHF. It contributes to the pair’s predictable behaviour and pattern. 

Amid a breakout, the new trading range will be stuck to and the behaviour will continue in the same manner. Although Switzerland is not a major global economy, the trading pair is popular due to its strong reputation as a haven. 

Traders look to the franc in terms of economic uncertainty due to stability. It is still a popular choice among traders despite being less liquid. The stability contributes to making its moves predictable hence easy to trade. 

The pair usually tends to break to an all-time low then range back to the previous low, making its ranges very distinct. The break to the upside will meet another previous low, with the expected trends in the pair.

4. NZD/USD

The following are some of the factors that influence this pair:-
  • Support and Resistance Levels.
  • Channel lines
  • Range markets
  • Fibonacci Retracement levels
New Zealand depends on China for dairy products and meat which contributes to 10% of the GDP. Despite the pandemic, New Zealand’s recovery indicates that they are not completely dependent on other countries. 

The commodity currency pairs are easy to monitor and predict. The strength of the kiwi currency made its moves more predictable with the application to support and resistance lines.

5. EUR/CHF

It is the most predictable currency pair among technical traders as the market is continuously in motion depending on forex trading chart patterns.

It is a slow-moving currency pair with low volatility and liquidity. The pair provides the following:-
  • An increase in the chance for support and resistance
  • Trade trend lines on ascending and descending pattern
  • Constant chances for channel trading
CHF has a soaring stock of Gold and Black money in Swiss banks. Therefore, it is more stable compared to other currencies. The rate makes both their economies closely tied together.

Final thoughts on the most predictable trading pairs of Forex

The above list highlights the five most predictable currency pairs. The currency pairs are easily predictable by the technical strategies used by traders. The list highlights the currency pairs as:
  • EUR/GBP
  • AUD/USD
  • USD/CHF
  • NZD/USD
  • EUR/CHF
Therefore, the most predictable currency pairs slow down and bounce back as they get near a distinct support or resistance line. It becomes easy to identify the best currency pairs to trade right now. 

You can sign up on Xosignals to get the best trading signals

Forex trading is on the rise and the predictions make it easier for traders to trade safely and identify which currency pair is most profitable in forex.
TAGS:
Forex,
CFD,
Forex trading
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