The central aspect of why you should choose the currency pair of Euro and the US dollar is the availability of forecasts and exchange rates. These currencies are known all over the world, and we hear any changes in the exchange rate in the news, see in banks, and can read on the Internet. That is, it is not difficult to predict these rates of these currencies, moreover, with the presence of such an amount of information.
The second main reason why traders choose the euro/dollar currency pair is the volatility of this pair. This makes trading a little riskier but gives a chance to earn more. But this way of trading is predominant for short-term transactions, which requires more attention from the trader.
Well, the third aspect is that when trading this currency pair you cannot completely lose all your savings, even if the rate drops very much, then the direction may change in the speed of time. So a kind of stability and volatility are preferable in trading these currencies.
First, let’s deal with the principle of trading a currency pair. It’s quite simple. If you read the news or do some analytics and understand that the US economy will continue to weaken, this means a harmful effect on the US dollar, in which case you must execute a purchase order EUR/USD. Thus, you bought the euro in the expectation that its rate will rise against the US dollar.
If you understand that the US economy is strong and the euro will weaken against the US dollar, you must execute an order to sell EUR/USD.
Thus, you are selling the euro in the expectation that the exchange rate will drop against the US dollar. The main thing that you will need when trading is the EUR/USD currency chart. The popularity of the EUR/USD pair, both among beginners and among professional traders, makes it essential to understand how to read the EUR/USD chart.
We will tell you how to understand the schedule. In any currency pair, the first currency indicated is the base currency, and the second is the quote currency. In the current EUR/USD indicator, the euro is the base currency, and the exchange rate shows how many units of the quote currency you get for one unit of the base currency. If the EUR/USD currency pair is trading at 1.2500, this means that you will receive $ 1.25 for each euro sold. When you see price increases on a chart, this can mean one of three things. The value may indicate that the euro is strengthening, that the dollar is weakening, or that both actions are happening simultaneously. Some traders apply various forms of technical analysis to their charts to make EUR/USD forecasts. If you look at price patterns or critical news events, a chart can give you an idea of current trends.