EURUSD

Long. . . .

LONG. . . .

The Buying And Selling of Currency Pairs

What is Forex Currency Trading?

Forex trading is a simultaneous buying of one currency while selling another.

Currencies get traded through "forex brokers" or a "CFD provider". Currencies are traded in pairs. Currencies are quoted in relation to other currencies.

AN example of this is the Euro vs U.S dollar (EUR/USD) or the English pound and the Japanese Yen (GBP/JPY).

When trading in the forex market, you'll buy or sell in pairs of currency.

Each currency is constantly fluctuating in value against the other currency.

The exchange rate is the relative price of the two currencies from two separate countries.

The exchange rates will fluctuate because one countries currency grows stronger than the other.

The Three Categories of currency pairs:

1. The "Major" pairs
2. The "Crosses" pairs
3. The "Exotics" pairs

Major currency pairs always include U.S. dollar.

The Cross-currency pairs don't include the U.S. dollar. Crosses that are involved with any of the major currencies are also called "Minors".

The exotic currency pairs comprised of one major currency and a currency from an emerging market or (EM).

The Major Currency Pairs

These pairs are considered the major pairs contain U.S dollar (USD) on one side and are the most frequently traded pairs.

There are EIGHT major currencies but only SEVEN major currency pairs.

In comparison with exotics and crosses, the major pairs price moves more often with major pairs that provide the most trading opportunities.

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EUR/USD "euro dollar"
USD/JPY "dollar yen
GBP/USD "pound dollar"
USD/CHF "dollar swissy"
USD/CAD "dollar loony"
AUD/USD "aussie dollar"
NZD/USD "kiwi dollar"


Majors are the worlds most liquid pairs.

Liquidity is a term used to describe activity levels in the financial market.

With forex liquidity is based off the number of active traders who are buying and selling a specific currency pair and what amount of volume is being traded.

The more often something is traded the higher it's liquidity.

An example of this is people trading EUR/USD currency pair at higher volumes than AUS/USD pair.

What this means then is EUR/USD is more liquid than the AUD/USD pair.

Major & Minor Cross-Currency Pairs or Minor Currency

Currency pairs that include any two of the major currencies apart from U.S. dollar are know as the cross-currency pairs or the "crosses."

The Major Crosses are also know as the "Minors."

They're not frequently traded like the major pairs, the crosses are still pretty liquid and still provide plenty of trading opportunities.

Don't make the mistake of confusing the minor currency pairs with the seven major currency pairs that all include the U.S dollar against one of these six other most liquid currencies in the world.

Most actively traded crosses derived from the three major non-USD currencies: EUR, GBP, and JPY.

The Euro Currency Crosses

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Pair EUR/CHF Eurozone / Switzerland "euro swissy"
Pair EUR/GBP Eurozone / United Kingdom "euro pound"
Pair EUR/CAD Eurozone / Canada "euro loonie"
Pair EUR/AUD Eurozone / Australia "euro loonie"
Pair EUR/NZD Eurozone / New Zealand "euro kiwi"
Pair EUR/SEK Eurozone / Sweden "euro stokie"
Pair EUR/NOK Eurozone / Norway "euro nockie"


YEN Currency Crosses

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Pair EUR/JPY Eurozone / Japan “euro yen” or “yuppy”
Pair GBP/JPY United Kingdom / Japan “pound yen” or “guppy”
Pair CHF/JPY Switzerland / Japan “swissy yen”
Pair CAD/JPY Canada / Japan “loonie yen”
Pair AUD/JPY Australia / Japan “aussie yen”
Pair NZD/JPY New Zealand / Japan “kiwi yen”

Pound Currency Crosses

Pair GBP/CHF United Kingdom / Switzerland “pound swissy”
Pair GBP/AUD United Kingdom / Australia “pound aussie”
Pair GBP/CAD United Kingdom / Canada “pound loonie”
Pair GBP/NZD United Kingdom / New Zealand “pound kiwi”

Other Currency Crosses

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Pair AUD/CHF Australia / Switzerland “aussie swissy”
Pair AUD/CAD Australia / Canada “aussie loonie”
Pair AUD/NZD Australia / New Zealand “aussie kiwi”
Pair CAD/CHF Canada / Switzerland “loonie swissy”
Pair NZD/CHF New Zealand / Switzerland “kiwi swissy”
Pair NZD/CAD New Zealand / Canada “kiwi loonie”

Exotic Pairs


The exotic currency comes from countries with developing or emerging markets.
Exotic currency pairs are made from one major currency that is paired with the currency of an emerging economy, such as Brazil, Mexico, Turkey, Chile, or Hungary.

An exotic currency pair includes one major currency alongside one exotic currency.

The example below contains a few exotic currency pairs.

Try to guess what those other currency symbols stand for?

Some forex brokers may offer the following exotic currency pairs, it’s good to know what they are.
Remember that these pairs are not heavily traded as much as the “majors” or the “crosses,” so these pairs transaction costs are usually higher.

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Pair USD/BRL United States / Brazil “dollar real”
Pair USD/HKD United States / Hong Kong
Pair USD/SAR United States / Saudi Arabia “dollar riyal”
Pair USD/SGD United States / Singapore “dollar sing”
Pair USD/ZAR United States / South Africa “dollar rand”
Pair USD/THB United States / Thailand “dollar baht”
Pair USD/MXN United States / Mexico “dollar mex”
Pair USD/RUB United States / Russia “dollar ruble” or “Barney”
Pair USD/PLN United States / Poland “dollar zloty”
Pair USD/CLP United States/ Chile

Exotics currency spreads can be two or three times higher than that of EUR/USD or USD/JPY.
Because of general low liquidity, exotic currency pairs can often be far more sensitive to economic and geopolitical events.
An example being a political scandal an unexpected election result may cause an exotic pair’s exchange rate to swing wildly.

If you're going to trade exotic currency pairs, don't forget to factor this into your decision.
For those who are fascinated with exotics, here’s a more comprehensive list.

CURRENCIES CODE & COUNTRY

Code AED UAE Dirham Code ARS Argentinean Peso
Code AFN Afghanistan Afghani Code GEL Georgian Lari
Code MYR Malaysian Ringgit Code AMD Armenian Dram
Code GYD Guyanese Dollar Code MZN Mozambique new Metical
Code AWG Aruban Florin Code IDR Indonesian Rupiah
Code OMR Omani Rial Code AZN Azerbaijan New Manat
Code IQD Iraqi Dinar Code QAR Qatari Rial
Code BHD Bahraini Dinar Code IRR Iranian Rial
Code SLL Sierra Leone Leone Code BWP Botswana Pula
Code JOD Jordanian Dinar Code TJS Tajikistani Somoni
Code BYR Belarusian Ruble Code KGS Kyrgyzstani Som
Code TMT Turkmenistan new Code Manat CDF Congolese Franc
Code LBP Lebanese Pound Code TZS Tanzanian Schilling
Code DZD Algerian Dinar Code LRD Liberian Dollar
Code UZS Uzbekistan Som Code EGP Egyptian Pound
Code MAD Moroccan Dirham Code WST Samoan Tala
Code EEK Estonian Kroon Code MNT Mongolian Tugrik
Code MWK Malawi Kwacha Code ETB Ethiopian Birr
Code THB Thai Baht Code TRY New Turkish Lira
Code ZAR South African Rand Code ZWD Zimbabwe Dollar
Code BRL Brazilian Real Code CLP Chilean Peso
Code CNY Chinese Yuan Renminbi Code CZK Czech Koruna
Code HKD Hong Kong Dollar Code HUF Hungarian Forint
Code ILS Israeli Shekel Code INR Indian Rupee
Code ISK Icelandic Krona Code KRW South Korean Won
Code KWD Kuwaiti Dinar Code MXN Mexican Peso
Code PHP Philippine Peso Code PKR Pakistani Rupee
Code PLN Polish Zloty Code RUB Russian Ruble
Code SAR Saudi Arabian Riyal Code SGD Singaporean Dollar
Code TWD Taiwanese Dollar

There's 180 legal currencies in the world, recognized by the United Nations. This makes for a lot of potential currency pairs! Sadly, not all of these are readable. Forex brokers tend offer about 70 currency pairs for their traders.

Apart from the 3 main categories of currency pairs, there are some other “groups” of currencies that get thrown around in the FX world that you should know about.

G10 Currencies

There's ten G10 currencies they're the most heavily traded currencies in the world. They are also ten of the world’s most liquid currencies.

They are exchanged with traders regularly in an open market with little impact on their own international exchange rates.

United States dollar USD
European Union euro EUR
United Kingdom pound GBP
Japan yen JPY
Australia dollar AUD
New Zealand dollar NZD
Canada dollar CAD
Switzerland franc CHF
Norway krone NOK
Sweden krona SEK
Denmark krone DKK


Scandies

Scandinavia is a sub region of Northern Europe, known for their strong historical, cultural, and linguistic ties.
The term “Scandinavia” is used by locals and covers the three kingdoms in Denmark, Norway, and Sweden.

Collectively their currencies are known as the “Scandies“.

A long time ago, Denmark and Sweden established the Scandinavian Monetary Union to merge their currencies to a gold standard. Norway joined in later.

This meant that these countries now had a single currency, with the same monetary value. The only exception is that each of these countries minted its own coins.

When World War I happened, the gold standard was abandoned and this Scandinavian Monetary Union disbanded. Those countries decided they would keep the currency, even if their values were separate from one another. This remains the state of things as of this writing.

If you notice the currency names, they all look the same. This is because the word “krone or krona” literally means “crown”, these differences in spelling in the name represent the differences between those North Germanic languages.

Crown currencies. A very cool name for your dosh. Hey slip me some crown bud.

Summary

If you made it this far well done, we've just gone over a lot of information and your FX I.Q. level is raising. Let’s summarize what you've covered so far with some questions:

What is a forex currency pair?
Currency pairs are a pairing of currencies where the value of one currency is relative to the other. For example, GBP/USD is the value of the British pound relative to the value of the U.S. dollar.

Which are the major currency pairs?
The major currency pairs (“majors”) are the pairs that include the U.S. dollar and they are the most frequently traded pairs. There's SEVEN of them: EUR/USD, USD/JPY, GBP/USD, USD/CAD, USD/CHF, AUD/USD, and NZD/USD.

What are currency crosses?
Currency crosses (“crosses”) are the most frequently traded currencies that do NOT include the U.S. dollar in their pairing. Crosses include these pairs EUR/GBP, EUR/CAD, GBP/JPY, EUR/CHF, EUR/JPY, etc.

How many currency pairs are there?
There's HUNDREDS of currency pairs in existence though not all fo them can be traded in the FX market. The United Nations currently only recognizes 180 currencies. If you paired each currency up to another, it’s a lot.

OMG this was so long, and I forgot the first half was in the clipboard and deleted it when replying to the thread earlier i've had to re write half of this twice damnnn.

Now I've been documenting how 7 rules the market for 12 years and just reminded there is 7 major pairs, and in no way has that freaked me out.

Forex Market Scale And Liquidity

The bulk of forex trades take place on the “interbank market“.
Different from other financial markets such as the New York Stock Exchange (NYSE) or London Stock Exchange (LSE), this forex market has neither a physical location nor and there's no central exchange.
The Forex currency market is considered to be an over-the-counter(OTC) market due to the fact that the entire market is run over computers electronically, within a network of banks, continuously through a 24-hour period.
This means that the FX currency market is spread out all across the world with no centralized location.
Trading can take place anywhere so long as you have an Internet connection!

The forex OTC market the biggest, most popular financial market in the world.
It traded globally by large numbers of individuals and organizations.
In the OTC market, the participants can be choosy and determine who they want to trade with depending on the trading conditions, attractiveness of prices, and the reputation of the trading counterparty (the other party who takes the opposite side of a trade).

The seven most actively traded currencies.

USD pair 84.0%
EUR pair 39.1%
JPY pair 19%
GBP pair 12.9%
AUD pair 7.6%
CHF pair 6.4%
CAD pair 5.3%
Other pairs 25%

"Due to the fact there's two currencies involved in each transaction, the sum of the percentage shares in individual currencies totals 200% and not 100%"

U.S. dollar is the most traded currency and makes up 84.9% of all transactions!
Euro’s share comes next at 39.1%, the yen is third at 19.0%.
You can see, most of these major currencies are always in the top positions for this list!

U.S Dollar is a King in the Forex Market

Notice how often we mention the U.S. dollar (USD).

Because the USD is one-half of every major currency pair, and these majors comprise 75% of all trades, then you must to pay attention to the U.S. dollar.

According to the International Monetary Fund (IMF), the U.S. dollar comprises aproximately 62% of the world’s official foreign exchange reserves!
Foreign exchange currency reserves are assets held on reserve by a central the bank in foreign currencies.
Almost every investor, business, and central bank hold it, they're watching the U.S. dollar.

Other significant reasons why U.S. dollar plays a Key role in this forex market:

1. The U.S economy is the LARGEST economy in our world.
2. U.S. dollar is the world reserve currency.
3. United States have the largest and most liquid financial markets world wide.
4. United States has a stable political system.
5. United States is the world’s sole military superpower.
6. U.S. dollar represents roughly half of international loans and bonds. A lot of countries and foreign companies borrow in USD.
7. U.S. dollar is a medium of exchange for many cross-border transactions. An example being oil, priced in U.S. dollars. It's also called “petrodollars.” If Japan wants to buy oil from Saudi Arabia, it has be bought only with the U.S. dollar. If Japan does not have any dollars, it will have to sell its yen first to buy U.S. dollars.

So the world is heavily dependent on continuous supply of USD to facilitate trades, payments, and loans.

U.S. dollar gets more interest from global banks than any of the other currencies. U.S. dolalr is the most commonly held denomination among foreign banks assets, including loans and other USD-denominated securities, with a balance of about $16.7 trillion suggested by the most recent data.

Speculation in the Forex Currency Market

An important thing to take note of in the forex market is that while commercial and financial transactions form part of the trading volume, most currency trading is based on speculation.

That is to say, most of the trading volume is coming from traders who buy and sell based on short-term price movements of currency pairs.

Trading volumes triggered by these speculators is estimated to be more than 90%!
The scale of this forex market means that the liquidity – the amount of buying and selling volume is happening at any given time – is super high.

This provides many opportunities for anyone to buy and sell forex currencies.

For a traders view of markets, liquidity is very important because it will determine how easily a price can change during a specific time period.

Liquid market environments like forex enable huge trading volumes to happen with very low effect on the price, or price action.

The forex market is relatively ultra liquid, the market depth could change depending on the currency pair and time of day being traded.

Gotta leave the bible of trading education in my bio lol.

I don't like it . . . . I ll get out of it and return to short...

Haha mate you don't need to make your font size 100 to make me see it, just put a TE that's all i need. Trading is not about just makimg the right calls, risk management is also very important. I want to see all the details.

Hello team!

This is my idea for EURUSD:

I had to bleach my eyes out after looking at ur chart

bears needs strong power to breakdown nearest the last support due to price action above support

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actually the market will breakdown nearest last support because the current target market is 0.98967

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when trend has forming , all news will be support the down trend

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in wyckoff method , yesterday price action, only as testing resistance, Of course, in the resistant area, Smart Money puts a layered SELL order pending

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...Took my losses and licking my wounds... Γατακια... FLAT fttb . . . .

My take of what will happen . . . . 1.00 40

Maybe you missed this post? Especially, "Change comes from the bottom and progresses upward through the TFs."

Hey suthmo, the blue area is the first possibility that I would have bought EU today and the yellow area would have definitely bought with direction confirmation. Note the entries would be about 0.997 and 0.998, so the same level that you bought yesterday.

So I see no advantage to your entry strategy if it is based on "this wave SHOULD end here" versus my use of direction change confirmation coming from smaller TFs and progressing upward through the TFs: It seems to me that you must do a lot of work with wave counting, trying to assign the correct wave number, considering alternate wave counts, checking Fib levels, and more, compared to simply comparing swings on multiple TFs that I do.

Nice that we agree on 1.004 per this.

without volatility, price can't move to the true direction , without volatilty = no target to reach

from range volatility intra day (hours 1-4 mt4) === target trend = usually 1,3,5,8 x range intra day volatility

SORRY FIRST TO ALL FRIENDS, I AM NOT A TEACHER OR I AM NOT A GURUS .... I JUST LIKE TO SHARE EXPERIENCES AND SHARE WHAT I HAVE LEARNED. ..... MY EXPERIENCES MANY DO NOT LIKE TYPE TRADERS LIKE ME

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WE CAN SEE WITH RENKO CHART MARKET STILL SIDEWAYS
SIDEWAYS = TEMPORARY STOP PRICE MOVEMENT IN TREND / REVERSAL = PRICE MANIPULATION TO BEGIN )

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NEWS SUPPORT THE DOWN TREND

my view

pic1
if we stay in blue ch. = long

pic2
USindex - above S = short EUr/USD

pic3
Eurusd - vertical resistance and horizontal R

8:37 EST. ... I see no steam...no pressure.....no haste . . .

OK......that s better....... Approaching my 30-40 selling area.

That was a great little short-term bullish rally. Booking these pips for money in the back and peace of mind. Reentering long, but with a very small position. I am eyeing 1.004xx before the weekend, but of course, anything can happen. Good luck to all!