Today I would like to give you another fundamental concept about picking the pair.
Everything Davit mentioned about choosing currency pairs is based on a very simple idea: think in terms of continents.
Some currencies are linked because their economies move together.
For example, USD and CAD belong to the same continent, so their economic behaviour is connected.
EUR and GBP also move closely for the same reason.
AUD and NZD share the same region, so their movements often match as well.
JPY is different.
It stands alone in its region, which is why you often see strong reactions on all JPY pairs.
When the market moves, everyone hits JPY at the same time because it has no partner currency besides it.
This is also why Davit always said don’t touch GBPAUD or GBPNZD if you don’t know what you’re doing, and the same warning goes for CHF pairs.
These pairs can move in very unpredictable ways because of how the economies interact.
AUD and NZD belong to the Commonwealth, and GBP is also part of that structure; therefore, GBP can impact them significantly and often in ways that are difficult to predict.
This is why choosing the right pair is important.
Many times you will notice that pivots are touched almost the same way on pairs like AUDUSD and AUDCAD.
This is because they share similar economic connections. Your trading style will decide which one you prefer, but trading both is almost like trading the same pair twice.
Thinking about currencies by continent helps reduce noise, avoid unnecessary risk, and choose pairs more wisely.
Everything Davit mentioned about choosing currency pairs is based on a very simple idea: think in terms of continents.
Some currencies are linked because their economies move together.
For example, USD and CAD belong to the same continent, so their economic behaviour is connected.
EUR and GBP also move closely for the same reason.
AUD and NZD share the same region, so their movements often match as well.
JPY is different.
It stands alone in its region, which is why you often see strong reactions on all JPY pairs.
When the market moves, everyone hits JPY at the same time because it has no partner currency besides it.
This is also why Davit always said don’t touch GBPAUD or GBPNZD if you don’t know what you’re doing, and the same warning goes for CHF pairs.
These pairs can move in very unpredictable ways because of how the economies interact.
AUD and NZD belong to the Commonwealth, and GBP is also part of that structure; therefore, GBP can impact them significantly and often in ways that are difficult to predict.
This is why choosing the right pair is important.
Many times you will notice that pivots are touched almost the same way on pairs like AUDUSD and AUDCAD.
This is because they share similar economic connections. Your trading style will decide which one you prefer, but trading both is almost like trading the same pair twice.
Thinking about currencies by continent helps reduce noise, avoid unnecessary risk, and choose pairs more wisely.
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