Why is EURUSD and a few others so popular?

I am new to Forex still and have just been focusing on the EURUSD. I know that the USD pairs are most traded.
But i’ve just been thinking about other pairs and i really do not understand the following.

It seems most of us who do not scalp are looking for nice trends to get in on. Well take a look at the EURUSD and compare it right now to what the EURNZD is doing. I am pretty certain that jumping into a sell on the EURNZD will get me huge profits over a week +

Every single day has been predictable with this pair. I know that it moves less, less volatile. But it seems to me that less volatility is better and trends must be in place for “longer” just like this one and GBPNZD with high correlation to the Euro.

So why are so many just interested on the EURUSD? its understandable for scalpers because the low spread. But i’m thinking right now, go short on EURZND with 50 pip SL and ride it out for likely 10-1 risk reward depending on when this trend finishes.

Please enlighten me as to why everyone isnt going crazy over this pair right now and all eyes remain on the EURUSD, GBPUSD and anything else with USD in the pair…

Over the last 2 weeks the EURNZD has dropped 1000 pips in one long ride and still going. Hell… I can be watching EURUSD all day and struggle to find an entry. Why does this pair make forex look so easy? What am I missing here that prevents people from taking advantage of these massive trends and making huge profits?

Am I just mistaken because its just a good pair to trade at this moment? perhaps when not in this kind of strong down trend the pair is just as difficult?

While viewing the chart on the daily zoomed out, I saw a range of 5000 pips. On the EURUSD I saw a range of 3000 pips. More pips to be had on the EURNZD but also… less volatility. So more pips with less volatility = way better trends.

EDIT - Im using a pratice account so have gone in just now with 50 pip sl. This trend just keep going with very similar volatility day and night… Will see what happens.

thanks

The crosses are fickle trade instruments.

Yes they tend to move more consistently at first glance, but odd things can throw them out of whack in a hurry, with sudden large moves. Look at a lower time frame for examples of that. You’ll often find the worst slippage on the crosses because of lack of liquidity. A 50 pip stop could turn into a 70 pip loss with a sudden hard move.

And liquidity is why people tend to stick with the major pairings. It’s easier to get an order filled at your expected price with the vast majority of trades being on the majors.

My personal rationale (can’t speak for others of course) is that the intra-day technicals play out more reliably on a pair with deep liquidity. That said, I have no doubt that a well-rounded trader with quality tools would have no trouble pulling a profit from these cross pairs. Comes down to personal choice, really. If you think you’ve discovered an abandoned gold mine… don’t wait for the forum gurus to come on and give you the green light before you start making money!!

The best answer I have herd all day

I personally play a lot of crosses less than 30% of all my trades made every week are in the majors. Yes there is less liquidity and costs are higher (larger spreads), but there is no reason you can not trade them profitably. The key here is to understand your environment and adapt your strategy to it, just like playing football on a bright sunny day or a windy snowy day.

Hah Hah, ho ho ho, LOL ROFL and all that predictable, hee hee, so funny, Forex predictable, gee’s, best laugh I’ve had all year

LOL
I think the sentence after that one explains what is so predictable about it.
"I know that it moves less, less volatile"
So he can predict that is less volatile…hmmm but where will it go ?

Yes i understand you can’t predict where it will go but come on… are you telling me that the last 10 days show a 100+ pip drop with great fib retraces are not high probability trades? they are.

BTW, i have my pending order there still. not yet hit but price retrace up between the 32.8 and 50 fib. ( was predictable! )

I reckon the people in on the trade for the last 2 weeks will be saying its predictable also. That is untill the trend ends. While its going down… I will trade on the short, I won’t be staying out because i’m scared that it just “might” turn around.

I will have to be careful of the slippage though. Thats what I didn’t realise. Less opposing orders to get you filled… Oh well, can only try.

I guess it depends on your style? I like to compare the average spread with the average daily range for each currency pair. What I like is a currency pair that provides maximum range with minimum spread.

Looking at the babypips school, you’ll find that the EURUSD pair moves an average 114 pips during the European session. Average spread is around 1.5 pips from experience. The USDJPY pair moves an average of 66 pips in the same session, but the spread is usually 2.5 pips. If you’re trading the USDJPY, you’re paying more spread for less pips.

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Hi
I hope you realize that there was no malice intended, I just thought the comment was funny.
I only looked at the crosses for one day and lost interest, I’ll have a look again sometime, thanks for bringing it up.

Cheers

Ouch…

Here’s a cold one to “predictability”.

Since you are new to Fx, you may want to stick with the majors. Crosses tend to be volatile with exception of a few, so if you are planning to scalp on crosses, you need to know what you are doing…

In my opinion, Eurusd is most used by traders because using this pairs the volatile is very fast. so making pips is fast and quick. Its different with other pairs.
I like too trade with this Eurusd pairs in liteforex broker. with fair broker and good EA is the best collaboration…

Great question.

The Brokers have sold the pair to their clients now everyone can over trade and their margin and commission grows. ;-). Short answer…

Long answer… The US and Europe are the largest trading continents. I would add the BRICS (Brazil, Russia, India and China) but they are pegged to the USD so by default all their trade happens in USD and the Japanese companies invoice their foreign clients in USD. So if all trade is taking place between Europe and America and the BRICS then it means that more EUROS and Dollars will be in circulation, this will be followed closely by GBP. This is makes the pair very liquid as a result the spreads are lower and this means scalpers (bulk of all intraday trades) have lower costs making the pair scalper heaven.

The crosses are also very liquid but the spreads are wider (the brokers have to earn their cut somewhere), these spreads are a nightmare for scalpers. Imagine scalping in a 4 pip spread market, you won’t be in the game long, some crosses are up to 7 pip spread. However the most cash gets made on these by those willing to take a longterm trading strategy. The reason for this is volatility is incredibly high and when they move they move…

So EUR/USD is the preferred pair to milk new traders of their hard earned capital and many will tell you they don’t even touch it, however the pair moves 100-150 pips a day so you can see how it can be attractive to the unsuspecting. It is on this pair manipulation is the highest at even central bank level. IMO it is not for the novice. GBP/USD is by far the most reliable and will make you money, this is because the UK does not interfere with the currency and has a very hands off approach to capital flows. EUR/GBP is also pretty reliable.

I have traded EUR/USD for many years and it has a very pleasant Bullish bias as the ECB always keeps this currency looking credible but with everything looking so crazy in the Eurozone who knows what lies ahead. So in my view it is worth trading on longterm S&R it will fill your trading account over months. I once went long on this pair when it was at 1.3300 levels with 200 pip stop, it is now over 1.37 and will continue to move as long as Mario has the mic, I will let you do the pip math so it pays to go long-term on this pair knowing the ECB will have war than see the EURO collapse. Always a reason to be bullish…

That said I was looking to short this pair when it reached 1.41 it retraced at around the 1.39 level and moved lower. A missed opportunity on the short side but as you can see it is a complex beast.

Emeraldorc has put it more coherently and elegantly than anyone! Someone should promote you, Emeraldorc, from ‘Junior Member’ to FX Man!

I also would avoid EUR/USD as it may look bullish overall but the Eurozone is not a stable place and the currency will play catch-up with the real economy slump… Besides, a stronger Euro will harm exports even more, so if a QE-style stimulus programme has so far been avoided, the ECB will come under even more pressure to act soon, if the Euro keeps creeping up as it has been doing.

I personally avoid this pair and prefer the EUR/GBP, or other Euro pairs…

CHeers.

Well yes, I understand whats gone before but EU looks great for a bounce right now? I’m branching out LOL!!! GU looks inconclusive right now. EU looks long… entered at 37 dead. We shall see?

EDIT: Last post on BP guys… its been a blast! PipMhappy… found that elusive email and will forward in PM.

Thanks Pipme :slight_smile: