Tag Archives: currency pairings

The Currency Pairing Conundrum

The currency pairing predictability conundrum

You’re sitting at your computer and crack your knuckles in anticipation of a profit producing trading session. You log on to your account and have your trading platform ready to go. You think to yourself is this the right currency market to trade? Is this the right pairing that’s going to put me “in the money”? Do I have the right strategy for this currency pairing?

If you’ve ever questioned your trading approach before you even got started, guess what… you’re not alone! It does not matter whether you’re a seasoned trader or just starting out. We all have experienced times of anxiety where we have questioned our moves in pursuit of a profit making trade.

Let’s keep it real. There are countless combinations of currency trading that can formulate success or failure. The many combinations could include:

  • Time frames you trade the market
  • Your entry points
  • Your exit points (and slippage) on the forex market
  • Your expiry’s on the binary option market
  • Your charts and trading platforms
  • Appropriate indicators
  • Currency pairings
  • Strategies and systems

These are all decisions that you have to make each and every trading session in order to execute a trade. All  in hopes that you made the right decisions that will successfully produce a profit and put you “in the money”.

On this post we are going to focus on the currency pairing conundrum.  An integral part of your trading success will be based on the currency pairings that will best accommodate your strategy.

Due to the nature of volatility in the currency markets, predictability is an important key that  will keep you “in the money” over and over again. The truth is, that points of predictability are more prevalent with certain currency pairings, than with others, based on the strategy or system you’re trading.

Imagine yourself capturing, harnessing and riding this pony of predictability as you stride into the horizon of profit.

There are currently five main currency pairings that are dominant when it comes to the all important key of predictability. (Of course, a caveat: there are always going to be exceptions in trading other currency pairings that can have you taking advantage of market movements. These can be anticipated based on fundamental analysis of events that affect the pairing.) Always bear in mind the economic season of the year and the various regional and global events that affect the currency pairing.

The current predominant currency pairings for trend, behavior and range trading predictability are as follows:

  • AUD/USD
  • EUR/USD
  • USD/JPY
  • NZD/USD
  • USD/CAD

(Although these last two pairings have more of  a trend to lean towards unpredictability, more so than the other 3, during your trading day).

With the Scottish independence vote now in the rear view mirror, we may be able to anticipate that the GBP/USD pairing will also find its way to a much more predictable pattern; moving forward as we approach the upcoming  new year.

As you well know, volatility is what drives the market. When a tremor of volatility hits, you want to make sure that you are set up with the right currency pairing, at the right time with the right strategy that lines you up on target to be”in the money”.

This is when the system you’re trading, becomes critical for your profit making success. Small Money Made Big trading systems signal to you the best opportunity for success. Our guidance will direct you to the best currency pairing for that system. The predictability features that are embedded into the systems will have you succeeding on your trades many times over.

We want you to succeed. Being equipped with the knowledge, along with a Small Money Made big trading system, will boost your profit making potential straight to the moon!

 

 

Economic Activity

Forex and binary option market news – 4th week of September 2014

Long live the queen! The ballots have been tallied and it is a big “no” for the hopeful’s of Scottish independence. The currency markets and in particular the British pound pairings were very active and reactive to the outcome of Scotland’s independence vote. The U.K. stays united, but the sterling gave way to considerable volatility in the market. Savvy short term trader’s were able to cash in on handsome profits for their trading day.

The votes are in…were you one of the winner’s? I hope you took advantage of riding that wave of small money made big profit.

Now onto the market news that may impact your trading week:

  • For the Euro – The European Central Bank, known as the ECB, president will be speaking. President Draghi has been encouraging the euro zone on reform of investment policy. He will be continuing this trend of creating a “business friendly” approach to regulation that may help stimulate anemic economic growth. We hope that he provides a more defined direction on investment policy for the euro zone economies to grasp and pursue.
  • Flash manufacturing PMI, known as the Purchasing Manager’s Index, will be released this week for the Chinese, French and Germans. These announcements may cause a stir in volatility for their respective currency pairings based on what the number’s reveal. Will we see an uptick in expansion or will we see a trend towards contraction continuing to reveal a bump on the road for Asian and euro zone economies? There doesn’t yet appear to be significant economic traction as we head into the last quarter of the year.
  • Canada’s month over month retail sales numbers. We will look to see if the “loonie” reveals looney retail activity as we approach the last quarter of the year and the season’s holiday spending. It wouldn’t be surprising  to see if the overall sector has slowed from previous month’s as the “dog days” of summer 2014 are in the rear view mirror.
  • New Zealand- The kiwi’s trade balance which is forecast to ride at a deficit may be continuing a trend from last month’s numbers.
  • The release of German business climate . This leading indicator of economic growth may have a significant impact on your Euro pairings as the data reveals what we may anticipate going forward, in terms of economic business activity, going into the last quarter of the year.
  • USD announcements this week include:

– New home sales – With slow activity on the real estate market forefront     beginning to rear it’s head it wouldn’t be surprising to see less than stellar numbers. The typical “slow down” of the real estate season may be approaching with a louder wimper than what would be preferable.

– Durable and core durable goods orders – A number that may continue to see contraction

– Unemployment claims – We’ll see if this lagging indicator shows improvement as we approach the holiday hiring season where a boost in job openings may be in order.

Always check out the economic events calendar on our menu above to receive all the economic events that affect your trading week.

Remember to also check out all the Small Money Made Big winning trading systems with custom indicators that will always signal your best opportunity to profit every time you trade.