There are some eye pairs that move slowly when they come to a strong 'support' or 'resistance' as on the weekly chart and then bounce back into the trading range. If the momentum is strong enough, this is the type of currency pair that will "breakout" without looking back. This is a currency pair that is easier to track. However, not all currency pairs are technical and this easy to predict.
The permissibility of a currency pair does not apply by itself: changes in financial basis, market ups and downs, and trading seasons are among the factors that shape the character of the currency. The following is the current list and the positions for the 5 most predictable currency pairs in the first tribe of 2015, each with its own style:
AUD | USD: this currency is easier to predict its movements when it is in a 'downtrend' phase and has the capacity to respect 'support' and 'resistance' lines. When it reaches a higher high, it changes to an 'uptrend', and when it reaches a lower high, it changes to a 'downtrend'. Typical traits such as "channel" and "range" are expected to continue.
GBP | USD: The pound used to be farther away and sometimes moves fiercer than EUR | USD, but now it's getting smoother, putting the pair second fourth in the list. One of the reasons why this applies is because both the BOE and the Fed are designed to guard economic activity through an increase in the "interest rate". This does not mean the trade for the Pound Dollar is now so small, it is still big but only more respectful of technical lines. Take note, that if it makes a 'breakout', the pair always moves to the end of the next trading range, before starting to move.
NZD | USD: For those who prefer a small trading range, the kiwi often provides opportunities, especially looking back on the chart. Kiwi has a good memory for old technical lines as well as new ones. This is expected to continue.
USD | CAD: Often ignored by traders, the pair is back in the list. The big downside in oil prices, which is on the order of the day, has contributed to a bigger and better move for the pair's predictability. This pair has a tendency to chant the first time before it breaks later when it meets a large technical line.
EUR | USD: The world's most popular currency pair has been predictable in the fourth term trading year, amidst a clear 'downtrend'. Even though he is still on the list, he has fallen to the last place. The QE program in the Euro-Zone has changed everything and may spark new and unexpected traits. The general trend is down, but the road will be more winding. This pair is easier to predict over the long term but can be even more difficult to trade in the short term.
Are you trading pairs above? What's your view? Agree or not?
