Forex Trading With AUDUSD
Understanding the concepts and strategies of any forex trading system can be easy with a little study of the acronyms. Forex Currency pairs are simply those that can be dealt in one currency. So if you were looking to deal in EURUSD you would look to the pairs involving EURUSD and the USDCHF. These are the most widely traded currency pairs on the Forex market and are also the most actively traded by traders. In general, the top time of day to day deal on the Forex market is based upon the foreign currency pair you’re trading; however, certain pairs are much more heavily traded at certain times of the evening depending on what countries are open for business that day.
For ease of reference, any common currency pair that you’re dealing with will be looked at for ease of understanding in this article, such as the EURUSD and the GBPUSD. Most gurus think that these two forex pairs have about the same level of volatility; this is not the case. Volatility can rise or fall depending on how volatile a currency is, so it’s important to understand this when looking at these two charts. The best times to trade these for pairs are highlighted in bold to give you a clear view.
Currency markets are highly volatile due to the nature of international trade. If you know when a country is about to make a decision, it’s very profitable to buy their currency and wait for the dip before you sell it in order to take profit. There are times when you’re able to profit from both ends of a trend, however, these are few and far between. When looking at the AUDUSD and the NZDUSD trends, these are the best times to day trade forex audusd and be successful. You’ll want to stay on top of news events in your favorite national media outlets to get an overview of changes to the value of their currency.
The two currencies that are most commonly traded are the NZDUSD and the AUDUSD. When you’re looking at these charts, you’ll see that the NZD and the AUDUSD move in tandem at times. Generally, the strength of any given currency is proportional to how much activity there is on that particular pair. This gives you a good indicator of which currencies to focus on during their active time overall.
In general, the higher the volatility of any given pair, the better time to trade it, especially when you’re involved in short-term price action. If you find that the volatility of that pair is high, you may want to consider buying or selling them quickly. These spikes in price activity are called “swings” and are usually caused by major news releases from political leaders or financial reports. There are many other ways these fluctuations can occur, however, and having the data available to determine what caused them will help you when you’re looking for a profitable entry into the market.
Keep in mind, as well, that no one can predict the future of any currency. This means no matter how volatile the AUDUSD may be at any given time, it doesn’t mean you should jump into trading it with any speed. The best time for traders to pick up and start trading these currencies is when they are feeling the strongest in terms of volatility and news events. The strength of these currencies can go up and down, but knowing when and where to invest will give you the edge over other short-term traders.
While the AUDUSD does have some advantages when compared to other major forex pairs, it does have its disadvantages as well. For instance, while the price action is very strong, this means that trading can move too quickly through bad news. Also, the pair has one of the highest volatility levels and is one of the hardest pairs to profit from when the market is in consolidation mode. The best time of day for short term day trading of this pair would be on Friday and Saturday mornings.
Overall, the Australian Dollar holds its own against most major currencies and its strength lies mostly in its strong performance versus the US Dollar. The currency pairs do move quite frequently, however, so it’s best to get into the market when the strength of one currency is overpowering another. In addition, if you find a good way to work with this one currency pair, you could be on your way to big profits!