Currency Pair Characteristics

[mark8par]

I have been thinking a lot recently about different currency pairs and about the characteristics of them and wanted to get some input from fellow members and pool some of our knowledge or create something we can use for reference when placing trades.

Each currency pair act differently throughout the trading day and there are key times when to setup trades using different types of entry, setting up a pending or just entering at market price.

I dont know if other members would find it useful to have a better understanding and have something to refer to when placing trades.

Mark

 

[TheForexGuy]

Generally currencies will 'breakout' when their respective economy is active. But some of the majors have worldwide interest. For example AUDUSD can be very active in the London session as London traders chase the AUD or USD.

But generally speaking things like USDCAD where both currencies are most active during the New York session, you will most likely see breakouts then.

Also metals like gold silver, and even crude oil will generally be most active during the New York session, because the Chicago futures exchange opens about 1 hour after the NY open, and this is where all the big commodity contracts exchange hands.

Keeping in mind, anything can happen at anytime - this is the nature of Forex. Generally speaking, Asia session moves are generally weak and breakouts that occur hear as we all know here, tend to lead to breakout traps and set the stage for big reversals. London session is where you normally see breakouts and the New York session is where you see continuation. This is a very generalized statement though.

 

[mark8par]

Good answer, thanks