The characteristics of each currency pair and the corresponding operating habits

There are more and more people doing foreign exchange, because investing in foreign exchange can indeed bring profits to some people, but if you want to make profits through foreign exchange, you must have some knowledge about foreign exchange. The clearer the understanding of the currency, the easier it will be to profit.

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Major currencies of foreign exchange

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There are many kinds of currencies in the foreign exchange market, the most important ones are 6 kinds, namely USD, EUR, GBP, AUD, JPY, CAD, and currency pairs are EUR/USD, GBP/USD, AUD/USD, USD/CHF, USD/JPY, USD/CAD, etc. These six currency pairs are the most used varieties in foreign exchange trading. Usually, the US dollar is used as the default base currency, and even the names of major currencies are ignored, and may be called euros, pounds, etc. However, in foreign exchange transactions, international currency codes are usually used to represent them. When investing in foreign exchange, you only need to remember the international codes of various currencies.

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The characteristics of each currency pair and the corresponding operating habits

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Europe and the United States: The euro belongs to the first position in the non-US currency camp. From a fundamental point of view, not only the economic and monetary conditions of the euro zone, the US’s every move will cause changes in the euro. If there is any change in the policy of the US dollar, the euro can be very A good reaction to the market's point of view, this is very similar to the yen; from the disk, the technical analysis of the euro is relatively stable, and the volatility is relatively moderate under normal circumstances, which is very suitable for volatile operations. Once a judgment is made, it is necessary to exchange patient positions for large profits, which is slightly different from the pound.

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GBPUSD: The GBP/USD currency pair is a relatively active currency variety, and its volatility is much more severe than that of the euro. Under normal circumstances, a unilateral trend with no correction or only a small correction will not appear on the pound. This The meaning is in terms of the 4H map. Similarly, compared with the euro, the stop loss of the pound is larger, and the fluctuation speed is also fast, which is very suitable for quickly harvesting profits, and then looking for opportunities to enter. This is different from the euro, which is suitable for holding positions.

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U.S.-Japan: No vs. Japanese Yen is the currency pair I am most confused about, or the relationship between it and the U.S. dollar has never been clear to me. If the euro and the pound are the representatives of non-US currencies, the yen is in the same camp as the dollar. The Japanese yen and the US dollar also have the function of hedging. The impact of US monetary policy on other currencies is easy to understand, but the Japanese yen is not so easy to understand. The operation of the yen is also relatively small, and needs to be studied.

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United States and Canada: Generally speaking, the Canadian dollar depends on oil. I have not studied this carefully, but it still shows the commodity properties of the Canadian dollar. The fluctuation of the Canadian dollar is relatively small compared to the euro and sterling, and large unilateral occurrences are relatively rare. From the middle of 2009 to the present, it has been a large shock down, which is directly related to the fundamentals of the Canadian dollar. Canada's economy is relatively stable without major fluctuations. One is that it is mainly energy-based, and the other is the North American Economic Area, which is also a huge market. The operating characteristics of the United States and Canada are also based on holding positions, but the target should not be too large, just the edge of the big shock at the daily chart level.

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Meirui: The trend of USD/CHF is basically the opposite of that of the euro, or the trend of the Swiss franc is highly correlated with the trend of the euro, so it is also a more suitable variety for holding positions, and the euro can be compared in operation. The volatility is similar to the Canadian dollar, and it is relatively small, so the stop loss is also relatively small.

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Australia and the United States: The fundamentals of the Australian dollar against the US dollar have special factors. Due to the characteristics of Australia's economy, it is closely related to the conditions of Asian economies. The Australian economy is resource-based, especially minerals. The reason why the Australian dollar has always been strong is mainly due to the strong Australian economy and the high interest rate of the Australian dollar, which is also a very good carry currency. For the Australian dollar, basically no operation.

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These are the currencies that are mainly operated at present, and there is not much research on the cross market.