You can trade any of the many currency pairs but I choose the GBP/USD because it moves. Why? “This is due to the lower liquidity available and the larger point value. Due to the low liquidity, the pound tends to act as a leader in major US dollar moves.” I like this fact because my trades are typically very short and I’m only in for an average of 1-2 hours. I think that the currency pair(s) you choose to trade should be based on your trading style. Here are some ideas on why you should trade certain pairs:
- Trade the EUR/USD if you want smoother price action.
- Trade the USD/CAD if you’re interested in the correlation between crude oil and the Canadian dollar.
- Trade the USD/JPY if you use candlesticks or ichimoku as technical indicators.
- Need a leading indicator for the EUR/USD? Look at the USD/CHF.
- Like Gold? Look to the NZD/USD and AUD/USD where there can be a 85-90% correlation to gold prices.
- Afraid to lose a lot of money quickly? Trade the EUR/GBP which only has a daily range of about 30 pips.
- Not afraid to lose 100 pips very quickly? Wanna make 100 pips quickly? Trade the GBP/JPY.
These are just a couple of ideas. Like I’ve said before, I would recommend that you become an expert in the currency pair(s) you are going to trade. I’ve been doing my research, looking for a currency pair to trade other than the GBP/USD. I’ve mainly been looking for currency pairs that move for intraday breakout strategies.
Pair Range Spread
GBP/JPY 188 PIPS 8 PIPS
GBP/CHF 132 PIPS 7 PIPS
GBP/USD 124 PIPS 4 PIPS
EUR/CAD 109 PIPS 6 PIPS
EUR/JPY 103 PIPS 3 PIPS
EUR/AUD 101 PIPS 10 PIPS
USD/CHF 82 PIPS 3 PIPS
EUR/USD 76 PIPS 2 PIP
USD/CAD 75 PIPS 4 PIPS
USD/JPY 74 PIPS 3 PIPS
NZD/USD 66 PIPS 4 PIPS
CHF/JPY 63 PIPS 3 PIPS
AUD/USD 51 PIPS 2 PIPS
EUR/CHF 49 PIPS 3 PIPS
USD/SGD 44 PIPS 5 PIPS
EUR/GBP 30 PIPS 4 PIPS
Credit to : emptycube tradercube.com